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Conditional release from GPU lease payment obligations

Company: Applied Digital

Subject kind
customer
Statement date
2026-07-23
Current status
stated

The claim, verbatim

Applied Digital stated that if it could re-lease the GPU clusters to another customer, it would release Character Tech. from its payment obligations for those re-leased GPUs otherwise due under the Agreement.

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: “Applied Digital avers that if Applied Digital was able to re-lease the clusters to another customer, Applied Digital would release Character Tech. from its payment obligations for those re-leased GPUs otherwise due under the Agreement.”

How we checked this

Checked on September 20, 2026. The cited source supports every part of this claim.

The document contains this averment nearly verbatim.

Confirmed in the source:

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: “Applied Digital avers that if Applied Digital was able to re-lease the clusters to another customer, Applied Digital would release Character Tech. from its payment obligations for those re-leased GPUs otherwise due under the Agreement.”

View cached copy (2026-09-10)Live source ↗