GPU computing services lease agreement with Character Tech.
Company: Applied Digital
What the later record shows
Not a promise: a reported event · happened June 28, 2023
The claim, made in 2026, reports an agreement entered on June 28, 2023. No passage addresses whether the Phase I or Phase II GPU tranches described in it were actually made available.
Checked October 9, 2026 against filings, releases and reporting published after the claim was made. Quotes are verbatim from the linked documents.
The claim, verbatim
Applied Digital and Character Tech. entered into Service Level Agreement on June 28, 2023, under which Applied Digital agreed to make available 1,024 GPUs by June 2023 (Phase I Tranche) and 1,024 GPUs by August 2023 (Phase II Tranche), with Character Tech. to pay $1.99 per GPU per hour for Phase I services.
Source (primary)
Character Technologies, Inc. v. Applied Digital Corporation — Entry #32: OPINION AND ORDER: Applied Digital's Partial Motion to Dismiss in Character Tech., Court No (RECAP, court_filing)
View cached copy (2026-09-10)Live source ↗
Quote: “on June 28, 2023, Character Tech. and Applied Digital entered into the Service Level Agreement (SLA) Supportive to Customer Terms of Service Contract (the "Agreement"), in which Character Tech. agreed to pay Applied Digital an hourly fee... Applied Digital alleges that the Agreement required Applied Digital to make available 1,024 GPUs by June 2023 ("the Phase I Tranche"), and a second group of 1,024 GPUs by August 2023 ("the Phase II Tranche")... Applied Digital alleges that Character Tech. agreed to pay usage fees of $1.99 per GPU per hour, with a total contract value for Phase I Tranche of $35,701,555.20.”
How we checked this
Checked on October 11, 2026. The cited source supports part of this claim, but not all of it.
The opinion confirms the June 28, 2023 agreement and the 1,024-GPU tranches as matters both sides allege. The delivery deadlines and the $1.99 rate appear only as Applied Digital's allegations in a motion-to-dismiss ruling, but the claim states them as fact.
Confirmed in the source:
- Both parties' complaints allege that Character Tech. and Applied Digital entered into a Service Level Agreement on June 28, 2023.
- Under the Agreement, Character Tech. agreed to pay Applied Digital an hourly fee for access to a defined number of GPUs.
- Both parties contend that the Phase I and Phase II Tranches each consisted of 1,024 GPUs.
We could not confirm this from the cited source:
- That the Agreement required Applied Digital to make 1,024 GPUs available by June 2023 and another 1,024 by August 2023 is only Applied Digital's allegation; the court made no finding on it.
- That Character Tech. agreed to pay $1.99 per GPU per hour for Phase I is only Applied Digital's allegation; the court made no finding on it.
That does not mean it is false — only that this source does not establish it, as of the date above. If we find a source that settles it, we will re-check and update this page.
What we did: Read our cached copy of RECAP (https://archive.org/download/gov.uscourts.ded.89549/gov.uscourts.ded.89549.32.0.pdf) in full (48,875 characters, retrieved September 10, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms Character Technologies, Inc. v. Applied Digital Corporation — Entry #32: OPINION AND ORDER: Applied Digital's Partial Motion to Dismiss in Character Tech., Court No
Quote: “on June 28, 2023, Character Tech. and Applied Digital entered into the Service Level Agreement (SLA) Supportive to Customer Terms of Service Contract (the "Agreement"), in which Character Tech. agreed to pay Applied Digital an hourly fee... Applied Digital alleges that the Agreement required Applied Digital to make available 1,024 GPUs by June 2023 ("the Phase I Tranche"), and a second group of 1,024 GPUs by August 2023 ("the Phase II Tranche")... Applied Digital alleges that Character Tech. agreed to pay usage fees of $1.99 per GPU per hour, with a total contract value for Phase I Tranche of $35,701,555.20.”