DigitalOcean Stock Pops After Big Investment in AI
Shares of DigitalOcean (NYSE: DOCN) popped on Thursday after the company announced a $111 million acquisition of cloud infrastructure company Paperspace. As of 3:30 p.m. ET, DigitalOcean stock was up 13%.
Paperspace is all about fast and powerful cloud computing and DigitalOcean wants its infrastructure so that it can offer better tools for artificial intelligence (AI). AI takes a lot of computing power. But Paperspace's graphic processing units (GPUs) are up to the task.
Investors who aren't living under a rock know that AI stocks have captured Wall Street's full attention in 2023. Therefore, when DigitalOcean said it was expanding its AI offerings, it was just the right thing to excite investors.
Source Fool.com
