Key insights
- Digi Power X announced a $35 million commitment for Nvidia's Vera Rubin AI systems, targeting deployment in Q1 2027. This investment in advanced AI hardware for their GPU-as-a-Service business signals continued expansion in the AI infrastructure sector. While the company is currently unprofitable and potentially overvalued, the strategic acquisition of cutting-edge AI technology from Nvidia could position it favorably for future growth in the burgeoning AI market, potentially driving demand for related semiconductor and data center stocks.
MIAMI - Digi Power X Inc. (NASDAQ:DGXX)(Cboe Canada:DGX) announced a $35 million commitment to purchase Nvidia’s Vera Rubin platform for its NeoCloudz GPU-as-a-Service business, according to a press release statement issued today.
The company plans to acquire Nvidia Vera Rubin systems, which pair Rubin GPUs with 288GB HBM4 memory and the 88-core Vera CPU over NVLink 6. Initial deployment is targeted for the first quarter of 2027, subject to Nvidia’s production and delivery schedule. The company intends to fund the purchase from cash on hand.
Digi Power X reported it had approximately $150 million in cash and cash equivalents as of today, with roughly $65 million of capital already deployed into its Alabama site year-to-date. "As of June 3, 2026, the Company had approximately $150 million in cash and cash equivalents," said Paul Ciullo, Chief Financial Officer. The company maintains a current ratio of 1.18 and holds more cash than debt on its balance sheet, according to InvestingPro data. However, at a market cap of $21.4 billion, InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value.
The company’s AI data center campus development continues on schedule, with Phase 1 targeting 15 MW of IT load and a ready-for-service date of December 15, 2026. Full 40 MW deployment is targeted by the end of the first fiscal quarter of 2027. The dedicated on-site substation serving Phase 1 is complete, and grid interconnection has been finalized.
The company’s NeoCloudz GPU-as-a-Service platform has been processing AI workloads on its deployed fleet of Nvidia B200 and B300 GPUs since May 15, 2026, and recognized its first AI-related revenues in May 2026. The company generated $11.3 billion in revenue over the last twelve months with 11% revenue growth, though it remains unprofitable with a 33% gross profit margin. Investors can access 14 additional InvestingPro Tips and comprehensive financial metrics for deeper analysis.
Digi Power X is arranging project-level financing to support its data center buildout and expects to provide further details upon execution of definitive documentation.
CEO Michel Amar and President Alec Amar are attending the Datacloud Congress 2026 Conference this week in Cannes, France.
In other recent news, Digi Power X Inc. announced a significant Master Services Agreement with Cerebras Systems for a 40-megawatt AI data center campus in Columbiana, Alabama. This 10-year contract is valued at approximately $1.1 billion, with a potential total value of up to $2.5 billion, providing long-term revenue visibility. Additionally, Digi Power X has secured a 24-month bare metal GPU rental agreement with SubQ AI, valued at approximately $19.6 million, marking the commercial launch of its NeoCloudz GPU-as-a-Service platform. The agreement will utilize NVIDIA Blackwell GPUs at their Miami-based AI data center.
Digi Power X has also increased its at-the-market equity offering program to $175 million, as filed in a prospectus supplement. This increase is facilitated through A.G.P./Alliance Global Partners under an amended sales agreement. Furthermore, the company is set to release its first-quarter 2026 financial results on May 15, 2026, alongside an operational update. These recent developments highlight Digi Power X’s strategic partnerships and financial maneuvers to strengthen its market position.
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