Conditional early termination terms
Company: Applied Digital
The claim, verbatim
Applied Digital proposed that if it could find and contract with replacement customers to take over the GPUs, it would release Character Tech. from payment obligations for those re-leased GPUs otherwise due under the Agreement.
Source (primary)
Applied Digital Corporation v. Character Technologies, Inc. — Entry #38 (RECAP, court_filing)
View cached copy (2026-09-09)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 October 11, 2026. The cited source supports part of this claim, but not all of it.
This is Applied Digital's version of events. Character Tech. disputes that the condition was ever communicated before March 2025.
Confirmed in the source:
- Applied Digital alleges that its CEO, Mr. Cummins, suggested that if Applied Digital could find and contract with replacement customers for the GPUs, it would release Character Tech. from payment obligations for those re-leased GPUs
We could not confirm this from the cited source:
- That Applied Digital actually proposed this condition to Character Tech.; Character Tech. alleges it first learned of the replacement-customer condition in a letter dated March 12, 2025, and that Applied Digital withheld 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.90000/gov.uscourts.ded.90000.38.0.pdf) in full (48,875 characters, retrieved September 9, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms Applied Digital Corporation v. Character Technologies, Inc. — Entry #38
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.”