Good afternoon and welcome to your Apply Digital's Fiscal Second Quarter 2026 conference call. My name is Konstantin and I will be your operator for today. Before this call, Apply Digital issued its financial results for the Fiscal Second Quarter ended November 30, 2025 in a press release, a copy of which has been furnished in a report on a Form 8-K filed with the Securities and Exchange Commission, or as EC, and will be available in the Investor Relations section of the company's website. Joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins, and CFO, Saidal Momand. Following the remarks, we will open the call for questions. Before we begin, Matt Glover from Gatemy Group will make a brief introductory statement. Mr. Glover, you may begin.

Good afternoon, everyone. Thank you for joining our fiscal second quarter 2026 conference call. I'd like to begin by thanking our employees for their dedication to delivering high-performance, sustainably engineered infrastructure for AI, cloud, and blockchain workloads. Their execution and commitment continue to be foundational to our success. This quarter marks several important milestones across our HPC data center and hosting business. Bolares Forge 1 reached ready for service, energizing 100 megawatts on schedule and completing the first of three contracted buildings. The remainder of this AI Factory Campus is expected to be completed by end of 2027 and will host 400 megawatts for core weave representing approximately 11 billion in prospective lease revenue over approximately 15 years. We also announced a roughly 5 billion 15-year lease with a U.S.-based investment-grade hyperscaler for 200 megawatts at Polaris Forge 2. This is a $3 billion project near Harwood, North Dakota that is advancing on schedule with initial capacity expected in 2026 and full build-out in 2027. Together, these agreements represent 600 megawatts of lease capacity and approximately $16 billion in prospective lease revenue across our North Dakota campuses. Having secured two hyperscale leases in the region, inbound demand has increased meaningfully. As a result, we are in advanced discussions with another investment-grade hyperscaler across multiple regions, including additional locations in the Dakotas and select southern U.S. markets. While there can be no assurance of future contracts, we believe we are well positioned to begin construction of additional campuses in the near term. Hyperscalers are competing aggressively to secure sites that can support massive AI demand, responding to data highlighting significant shortfalls in global power capacity. Many are being asked to commit capital to 30-year power plant developments, meaning energy may take years to come online and could cost more than anticipated. Beyond the immediate rush, AI infrastructure is ultimately a cost of capital business where every input matters. In this context, we chose the Dakotas because we believe they provide a durable competitive advantage with low cost of abundant energy, climate, ample land for expansion of existing sites, and potential for future large-scale super sites that could align with regional energy developments, making applied digital sites not only immediately valuable, but we believe also more efficient and cost-effective over the long term compared with other regions in the U.S. and globally. Building on this advantage, we have significantly evolved our construction and design capabilities. Our current data center designs are modular and highly efficient, allowing us to run numerous concrete plants simultaneously and leverage prefabricated components delivered by 18 millers. The approach reduces construction timelines and lowers overall cost. We've expanded the footprint and flexibility of our building's design to allow for different GPU and ASIC chip architectures and networking infrastructure to support multi-purpose AI use cases and traditional cloud workloads. While AI is driving significant demand, cloud computing continues to grow and increasingly competes for data center capacity. Our facilities are purpose-built to support training, inference, and traditional cloud workloads intended to give hyperscalers maximum flexibility over the life of the asset.

Looking ahead, we expect to maintain a meaningful competitive advantage in the Dakotas and intend to announce additional locations in other event advantage regions with that i'll turn the call over to our cfi cfos at all moment for a detailed review of our financials that all thanks wes good afternoon everyone this quarter represents a major inflection point for applied digital after two years of construction and over 1 billion invested in our first 100 megawatt data center we have now begun to generate lease revenues we expect lease revenues to ramp over the next quarter and it's important to note that we currently have two different campuses under construction simultaneously representing 600 megawatts these buildings are expected to come online over the course of calendar 2026 and 2027 where we anticipate meaningful revenue growth over the coming 18 to 24 months this does not include any additional campuses currently under advanced discussions with customers which would be layered into these numbers according to their respective design and build timelines. From a high-level finance perspective, we have agreements in place with top-tier financial institutions that allow us to execute this repeatable and capital-efficient framework. The first step of this process is to draw on our development loan facility with Macquarie Equipment Capital, which allows us to fund pre-lease construction for new sites. Subsequent to the second first quarter end, we made our first draw under this $100 million facility. The second step, following a mutually agreed upon executed lease with an investment grade hyperscaler, is to access the Macquarie Asset Management's $5 billion preferred equity facility. To date, we have drawn $900 million from this facility to support our Polaris Forge one and two campuses. We expect a similar financial structure will be used going forward for future development projects. This multi-layered financing framework allows Applied Digital to leverage third-party capital for a majority of the upfront investment while retaining majority ownership of each site providing financial flexibility and reducing reliance on public capital markets. On the debt front this quarter we completed a 2.35 billion dollar private offering of our nine and a quarter senior secured notes due 2030 to finance the first two two of the three buildings at our Polaris Forge one site supporting the core we leases allowing us to refinance existing debt. Note, project-level debt typically carries higher interest rates initially as it finances the riskier portion of development, but once the buildings are operational, our goal is to refinance at lower rates. Additionally, our team is actively exploring and working on options to reduce the cost of debt for the third building, ensuring we continue to optimize our capitalistic structure. Now let's turn to the quarter. Revenues for the fiscal second quarter of fiscal 26 were $126.6 million, up 250% from $36.2 million in the prior year. The increase is primarily due to a $73 million of revenue generated from the 10-out fit-out services associated with our HPC hosting business, along with $12 million of recognized revenue in connection with the commencement of the first core weave lease at Polaris Forge 1, reflecting partial quarter lease revenue. On a cash basis for the leases, revenues were approximately $8 million. The difference between cash received and the revenue recognized reflects ASC 842 lease accounting, which requires lease revenue to be recognized on a straight-line basis over 15 years. We will aim to provide clarity on this difference on the annual basis going forward. Applied Digital's Study Center hosting segment, which operates 286 megawatts of customer ASICs across two North Dakota facilities, had an exceptionally strong quarter, contributing $41.6 million of revenue, up 15% compared to the prior year. This growth was primarily driven by increased capacity online across the company's hosting facilities. We are very pleased with this business, which generated roughly $16 million in segment operating profit in just one quarter on a $131 million asset base. Cost of revenues in total were $100.6 million compared to $22.7 million in the prior quarter. Approximately $69.5 million of the increase in the cost of revenue was associated with the tenant fit-out services for our HPC hosting business, while the remaining increase was associated with our data center hosting business and other expenses directly attributable to generating revenue. SG&A was $57 million compared to $26 million. This increase was due to an increase of $23.8 million in stock-based comp due to accelerated vesting of certain employee stock awards, $4.7 million in professional service expenses primarily related to an increase in legal services, and $1.2 million in personnel expense for employee cost and other costs attributable to supporting growth of the business. Interest expense was $11.5 million compared to $2.9 million, while net loss was $31.2 million, or 11 cents per share. On an adjusted basis, adjusted net income was positive $100,000, or 0 cents per share. Adjusted EBITDA for the quarter totaled $20.2 million. From a balance sheet perspective, applied digital is exceptionally well positioned. We ended the second fiscal quarter with $2.3 billion in cash, cash equivalents, and restricted cash versus 2.6 billion in debt most of which does not mature until 2030 and approximately 2.1 billion in total equity note these figures do not include the 382.5 million in proceeds from financings completed subsequent to the quarter end our goal is to maintain one of the strongest balance sheets in the industry throughout the majority of the construction phases intentionally holding a robust liquidity position to preserve a strong credit profile while enabling additional investments in equipment and new sites, then reassessing as buildings come online as our cash flow increases. With that, I'll turn over the call to Wes for closing remarks. Thank you.

Thank you, Seidel. Applied Digital is executing in a market defined by extraordinary hyperscaler investment now exceeding $400 billion annually. With our first two hyperscalers under contract for 600 megawatts and additional sites and advanced discussions, we are well positioned to scale rapidly. We now expect to surpass our long-term goal of $1 billion in NOI within five years. The Dakota campuses are expected to provide a durable strategic advantage through low-cost energy, natural cooling, and a supportive regulatory environment. We remain committed to responsible development, strong community partnerships, and environmental stewardship. We continue to invest ahead of the curve. This quarter, we led and invested $15 million in a $25 million funding round for Corentis, supporting advanced liquid cooling solutions for high-density AI workloads. We are also working with utilities and strategic partners, including Babcock and Wilcox Enterprises, to explore ways to add power to the grid without increasing costs to our customers. These initiatives reinforce our leadership in next-generation data center design, responsible grid management, and a long-term shareholder value creation. We plan to continue advancing our thought leadership at the forefront of data center technology and deepening our influence across the broader ecosystem. I'm also proud to announce the launch of Applied Digital Cares, a community initiative funding grants that support education, health, innovation, and local development in the regions where we operate. Through this initiative, we aim to improve the standard of living in these focused communities because of our success because our success depends on theirs finally as noted earlier i want to expand on the board's decision to spin out apply digital cloud we've entered a non-binding letter of intent to combine apply digital cloud with exo bionics to form chronoscale a dedicated gpu accelerated compute platform for demanding ai workloads this transition separates our cloud platform from our data center business intended to allow each to scale independently with greater strategic and capital flexibility. ChronoScale is set up to leverage the proven Applied Digital Cloud platform among the first to deploy NVIDIA H100 GPUs at scale. On an anticipated closing in the first half of 2026, Applied Digital is expected to own over 80% of ChronoScale. Today, the cloud business generates roughly over $60 million in trailing 12-month revenue with $313 million in assets. We believe spinning off our cloud business best positions us to serve the accelerating AI market while enhancing long-term shareholder value. With that, operator will open the call for questions.

Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star followed by the number one on your touchstone phone. You will hear a prompt that your hand has been ranged. If you would like to withdraw from the polling process please press TAR than the number two. If you are using a speaker phone, please make sure to lift your handset before pressing any keys. Your first question comes from the line of Nick Gals from B-Riley Securities.

Please go ahead. Thanks operator. Hey guys, congrats on all the progress. My first question was just, I was hoping to get a sense for your growth appetite in the cloud business. Good to see the announcement there for chrono scale. Should we expect the applied platform to be a host for any future GPU purchases, or how could Applied ultimately help attract incremental customers for ChronoScale? Thanks a lot.

Thanks, Nick. We've had a lot of discussions around that, so I think one of the key advantages that ChronoScale will have is the relationship with Applied Digital and access to large-scale data center facilities. Deploying the accelerated compute, whether it be gpus or tpus or lpus is part of the equation but having access to large-scale data center facilities to actually make those deployments is a bigger part of the equation right now and i think that's going to give that platform an advantage having the relationship with applied digital we've had some of those discussions we don't really want to get into how that will work in the future but i do think that's a big advantage for the cloud business as it spins out got it i appreciate that wes um my second one was just you know you signed an agreement for a limited notice to proceed with Babcock and Wilcox and I was just wondering if you could touch on the opportunity there what kind of optionality does this really give you going forward and what should we be looking for in the upcoming contract release the so for us with the BW solution is a very unique solution and an exciting solution in the market it, because it uses older technology or an older process, which has been proven out for a hundred plus years. It's using steam turbines. Think of coal plant boilers, but we're using natural gas. That company has actually made a lot of coal to natural gas conversions over the past decade plus. And what it allows us to do is go to market earlier. If you get in lines for uh natural gas traditional natural gas turbine right now if we put an order in today we're probably not getting delivery until 2031 2032 for that equipment we need power earlier than that we are working with our utility partners uh specifically now in the dakotas but expect to in other states as well the initial reaction from those utilities has been overwhelmingly positive uh and really interested in the solution that the utilities any utility in the country knows who bw is uh the company's been around for a long time very very good reputation and for us to be able to bring a product forward you know three four plus years to be able to generate power in the near term is a big advantage for those utilities and for us and i think you should expect to see more information about that in the first quarter as we proceed with it with a site and an actual schedule for build on on that equipment but it provides a really good option to apply digital to expand its current campuses and future campuses faster than we would be able to otherwise got it hey wes appreciate all the detail uh keep up the good work thanks next question comes from the line of darren of tai from roth capital please go ahead hey guys yeah good afternoon thanks for taking my questions and congrats on the progress uh two if i may

Hey, Wes, can you just talk generally about the landscape for leases and how pricing may have changed over the last six months? Like, is it improving, staying the same, going down? And then second question, can you just talk a little bit about the pre-lease financing?

I appreciate what it's actually doing, but, like, what does that say about your confidence when you know you're progressing on sites uh where you don't have signed leases just any kind of commentary and context would be great thanks sure so i'll start with pricing and darren i'll keep it specifically to us i don't want to speak for the market at large but i would i would say generally pricing has been stable to slightly better uh over the past six months the you know the demand profile for the past six months has been extraordinarily robust there there's i always want to expand a little bit on this with uh contracting there's there's the headline price that you'll see in contracts and and you know a calculated yield which is using an estimated cost to build um that's one aspect of it what i would say though that's that's as important or even more important is we're getting more favorable terms in other aspects of the contract that we you know focus on very acutely for things like cancellation uh transferability a lot of the things that make these contracts for us you know much more rock solid over that 15-year time frame and we're getting a lot more favorable treatment in those aspects uh as an example you know our current contracts are um really non-cancellable for 15 years the customer can cancel for convenience however they owe us the 15 years of payments if they do so that that's typically referred to as a make hole or a cancellation in the in the contract so we've been able to get that 100 percent um make hole transferability that doesn't allow them to transfer to a credit rating it's either equal or higher uh there's a lot of things that go into the contracting so i would just say in general that the contracting environment has gotten more favorable over the over the past six months um and then uh on on the the macquarie equipment facility and us announcing that i think you should think back to uh what we did for our facility in harwood north dakota we did something very similar and at the time i spoke about that as well as you know we will go forward with groundwork breaking ground getting the project moving when we have a high degree of confidence that we're going to sign a lease at a new campus or new campuses. And that's that facility. We use that same style of facility. Now we've made that facility effectively at Evergreen so that we can continue to draw and pay it back. But we use that in Harwood. We paid that back with the draw in Macquarie Asset Management. We've now drawn down again. We've purchased some land and some other equipment. We'll start construction on at least one new campus by the end of January. And that's because we have a high degree of confidence that we're going to sign a lease with a new customer that is different. And we said investment grade hyperscaler. It's different than the original one we signed in Harwood. And that's the goal for us. You know, Darren, we have a lot of momentum. So we've talked a lot about this before, where we're qualified with most of the investment-grade hyperscalers. We're really focused on six companies total here. And so we want to add new locations, and we want to add new customers. So we diversify both in location and by customer, and we expect to have a lot of success on that in 2026. and with what we're doing and what you're seeing the actions are now, you should expect that we think it's going to be in very early 20-6. Appreciate the insight, Wes. Thanks.

Absolutely. The next question comes from the line of Rob Brown from Lake Street Capital Markets. Please go ahead.

Good afternoon. Congratulations as well on all the progress. Just back to the chronoscale spin-out.

I think you said mid-year for kind of closing. what's what's the uh give us a sense of what steps have to happen between now and then in terms of getting finalized um finalized agreement and in a closing uh step what sort of has to happen here sure so it's it technically will be a merger rob and so we'll get to a definitive you know later this month or early in february and then there would just be a process for a shareholder vote to to complete the merger um you know i think in the first half of 26 is is the expectation, I think, is if I were handicapping it on the very, very early side in March, but I would expect kind of the April-May timeframe as we go forward with that.

Okay, great. And then as you kind of think about that business and the growth possibly there, I think you said a $60 million trailing or $75 million, I think you've all said sort of perspective. What's sort of the growth opportunity?

Is there additional capacity that can get leased out as a standalone business, or do you expect i assume expect some some growth and capacity as well but just a sense of the growth opportunity there yeah so so just for context on this rob when you know we announced back in april we were we put that into discontinued ops we're seeking strategic alternatives we evaluated a lot of alternatives but while we were evaluating those alternatives i think that market it changed pretty significantly. And what we're seeing is a big opportunity in the compute side of the market, obviously the data center side as well, but the compute side of the market, you're seeing a lot of deals happen over the past, you know, three or four months in that part of the market. We're involved in with a lot of those, you know, counterparties and discussions and have been, and we think there's a really large opportunity for our cloud business as we spin it out into chronoscale to to get you know some of those types of contracts um and we you know working with us we think there's a really unique relationship there we can get data center capacity to be able to deploy you know significant scale for those style of contracts with those customers um and and so we think this is the absolute best path for value creation for our shareholders there's to let this, you know, company spin out and capture that opportunity and, you know, raise its own capital and get on its own growth trajectory, which, you know, we just haven't focused on for the past, oh, eight months. So we think there's a huge opportunity there and you can see the stuff that's going on in the market and we're really well positioned to capture some of those opportunities.

Great, thank you. Thanks, Rob.

Next question comes from the line of Mike Grondahl from Northland Securities please go ahead hey guys thank you um you've mentioned a couple times advanced discussions um can you talk a little bit about how many sites you're having advanced discussions about and like how many megawatts just so we can get a feel kind of a sense of the breath that you're talking about um sure uh we uh i think we talked talked about two or three sites so i'll tell you it's uh we're in advanced discussion on um three sites and 900 megawatts three sites and

900 megawatts and then wes how are you thinking about the pipeline today how would you characterize that pipeline the the pipeline remains robust i i i will say mike when i think about the business And it's been like this for the past few months, you know, I'm thinking less about the demand side of the equation. And I talked about this a lot on the last call, which is, you know, our ability to scale, our ability to scale across multiple sites, then do construction across multiple sites and how many sites can we do construction across them. And the team spent a lot of time in 2025 and will continue in 26 working on our ability to scale and and you know execute these projects at the size that we're doing across multiple sites so it's less on the demand side because that's that's you know not been the really the issue for us or really i think the issue for the industry we'll focus more on how much can we do and and how much can we build from a supply chain perspective from a personnel perspective uh on an annualized basis and so i i don't think demand is going to be the limiter for us but i want to make sure you know we always want to make sure that we're delivering on time and on budget for our customers and i don't want to go too far out i we haven't hit that limit yet um and but but it's the piece that i think about a lot and and we internally think about a lot is what is the limit for us on an annual basis it's a large number um but that's really more the limiting factor for us and not you know what the demand the demand picture looks like great hey thanks a lot absolutely thanks mike your next question comes from the line of george certain from craig hollum please go ahead thank you um wes you mentioned uh having been qualified by a few of the investment great hyperscalers can you just talk about what that means when when we talk about being in advanced discussions i mean is how much more simplicity of getting something across the finish line is there once you've gone through that process versus you know hypothetically someone new in the market yeah so what i would say generally and i'm going to only be able to reference our experience so getting getting onboarded getting to the point where you you You know, you sign a master agreement that governs, you know, typically work orders or service orders you'll sign underneath of that can be anywhere from, you know, on the low end, three months to on the high end, you know, nine months to a year. And so we've been through the process there for most of these hyperscalers. So, you know, there's the six that we target, which are the five investment grade hyperscalers. and then the core weave. So we're through, out of those six, we're through that process with five of those. And so I think we're in a really good position. And so if we've already been through that process, doing a new building, even if it's a new building on the same campus or an expansion in the current building or doing even a new campus, if you're through that with one of those hyperscalers is a much shortened timeframe, abbreviated timeframe to get to that, you know, actual contract versus starting from, from.

So I want to put a couple of things together. And if you can help me, you were on CNBC the other day mentioned, by the way, movie star quality experience, frankly, but you mentioned you had done $16 billion of deals in 25 and that you would anticipate doing that or potentially better are in 26 and I want to dovetail that with what you just said on we're late stage with three sites and 900 megawatts am I kind of putting these things all together correctly yeah I think that's correct what I would just add to that on the George on the on the 900 megawatts you know I don't want to set the

expectation that all of that is done at the same time you know that that could be you know one at a time uh it could be none you know i i we've been through enough of this you you know george you've been through this with us as we've gone through the last few years nothing is done until it's done um that's just what we're working through right now but uh but but that's those two going together i think you know you're reading that correctly perfect thank you Absolutely.

Next question comes from the line of design at Todaro from Edom & Company. Please go ahead.

Hey, thanks for taking my question, and congrats on the quarter. Wes, you spent a good amount of time talking about how, I guess, supply and execution is a little bit more of the difficulty part than demand. I think you ultimately ended ahead of schedule on that first build for CoreWeave. Can you just walk us through maybe what you learned from that execution and give us confidence in how you'd be able to continue to execute on those builds on the development side? And then I have a follow-up.

Yeah, so, you know, we learned a lot going through that process on that first building, and we've made a lot of refinements. Typically, John, I think you've probably heard me talk about this before. So for us, one of the things I think differentiates us in the market is, you know, we started on this path back in 2022. too we've we've you know stubbed our toe in a lot of different ways uh through the years luckily we did most of that at a very small scale um but we had a lot of lessons on that first building and you see that reflected in design change and then construction change and how we operate all the way through our supply chain and standardizing you know lower a lower amount of skews lower amount of suppliers all these things that streamline the process that that we do to build these facilities um and and so we we feel like we have a really good handle on our construction timelines there's always things that can you know cause a problem that are out of our control on construction you know one of the things i i always you know worry about is weather um but we've we've built i think it's our fourth year in a row building in north dakota in the winter time so we're pretty accustomed to that as well um but but we have you know we went back securing supply chain, you know, well over a year ago, 18 months plus ago. And we thought we were really forward thinking on, you know, locking in, you know, 600, 700 megawatts of MEP for per year that we have for us. Now we're working to expand that. You know, that fits what we're doing right now, but I think that needs to go larger for us. So, but we feel good about our processes we have in place and and kind of the maturation of the the construction and development group uh versus what we did on building one i'm i'm i'm proud i'm really proud for the entire team that we delivered that on time and on budget for our customer um but but we get we have to continue to do that we feel really good about where we are for the you know the the core reef building that we're expecting deliver in the middle part of this year and the the building in hardwood we're expected to deliver and uh you know shortly after that and then the the next two buildings after that both in in ellendale and in in hardwood so we're feeling really good about where we are on schedule but um it's about you know the fact that we have streamlined this and we're on what i call our fourth generation design uh has really helped us in in you know simplifying the process and streamlining the process and being one of the companies that does deliver on time.

That's great. Thanks for that. And then just a quick follow-up. I think you've mentioned in the past getting calls from entities with sort of stranded power, and it sounded like there might be a little bit more pockets of available power out there than some of us in the industry had initially thought. Could you just maybe frame that up?

Is there still additional kind of pockets to acquire more fairly near-term power and maybe talk talk to color we yeah we keep finding more opportunities more and more opportunities everything we're in process with right now is is organic so we have a large amount in flight that is organic um but we we continue to see opportunities you know third-party opportunities and continue to evaluate those opportunities uh And some of those, you know, really for us, it's, you know, could be in a different, you know, geographic market for us that is a really attractive market, but we continue to look at that. But everything we're doing right now is organic, but we see those, you know, I would say daily, weekly at least, but typically multiple times in a week.

Great. Thanks for that, guys, and congrats again.

Thanks, John.

The last question comes from the line of Michael Donovan from Compass Point. Please go ahead.

Hi, Wes and Seidel, congrats on the quarter. Following up on Mike's pipeline question, can you touch upon expansion opportunities at PF1 and PF2, do you still have confidence in those reaching 1.4 gigawatts and 1 gigawatt respectively? And I have a follow-up.

Yeah, so every one of our campuses, I think this is an important point, every one of our campuses as the potential to go to at least a gigawatt and some you know significantly beyond uh a gigawatt but when when we think about our goals inside the company we have two campuses now you know they can each go to to a gigawatt or more uh so we have that pipeline in the future for ourselves and we're working on you know three three additional campuses we're working on a lot more than that but but think of the things we're in advanced stage on three three more campuses uh each one of them can can scale to two gigawatt capacity so for us if if we put those in place those contracts in place we have different customers on those campuses you know we we have a view and and a pretty clear path to you know whether it's by 2030 or 2031 or 2032 to to growing our capacity to five gigawatts if we don't add another campus after that. We would expect that we would, but it puts a really good growth path out for the company, just having these campuses in place that, you know, just getting to two gigawatts, if we were talking about this a year ago, would be, you know, monumental for us. But if we can expand to five campuses and have a clear path to five gigawatts plus of capacity, you know, over the next five years, that's a really great position for the um but all of those campuses have that expansion potential great i appreciate that um and with the discussions around nvidia this week with liquid cooling for vr rubens can you discuss a bit on what makes correntis a competitive solution so for uh correntis is a really interesting um you could go and look at their technology they had a very nice announcement with with microsoft uh i think a couple of months ago what we like about us is orentis has a cold plate technology um that i did i liken to uh semiconductor and then module a lot of semiconductors are built into modules so they they have the technology that i would classify in this case like semiconductor which is a specially designed um patterned cold plate that is dependent on each chip you know individually so whether it's b200 b300 uh ruben whatever it might be they map that chip they map the heat points of that chip they design the cold plate with a lot of micro channels through it and then and then it goes into a full cold plate um and it sits on top right now but this technology is designed to go in inside the semiconductor packaging in the future and then actually inside the manufacturing process in the epi um towards semiconductors and and the goal for this technology and a lot of this has proven out for them is that you can use if a chip goes say it's using one kilowatt down but the next generation chip uses three kilowatts or five kilowatts this technology can use the same amount of liquid to chill chips as they go up now there there's a there's a point where that breaks and there's a change where they need more liquid but from a data center operator perspective when having that efficiency inside is always great for our customers but to be able to deliver the same amount of liquid um on the data center side for a chip that's 3x the power density of what we're currently running really helps us future proof our infrastructure and so so we're really excited about that technology thank you there are no further questions there are no further questions at this time i'd like to turn the call back to wes cummings for closing comments sir please go ahead thanks everyone for joining us for our q2 earnings call i appreciate uh all of the support and look forward to speaking to you in april thanks ladies and gentlemen this concludes today's conference call

thank you very much for your participation you may now disconnect