Core Scientific (CORZ), the U.S.-listed cryptocurrency mining company, said it has signed a partnership with AMD that gives the chipmaker access to as much as 2.5 gigawatts of data center capacity to support customer deployments of AI solutions.
The companies expect to begin the first phase of delivery in 2027, starting with 500 megawatts. The arrangement includes a 15-year base contract covering five sites with a combined 530MW, and Core Scientific said that contract is expected to generate more than $14 billion in revenue.
The agreement marks another step in Core Scientific’s move away from traditional Bitcoin mining. The company faced bankruptcy pressure in 2022 and had previously said it planned to liquidate its Bitcoin holdings in the first quarter of this year. Its tie-up with AMD points to a business now centered on AI data centers and compute infrastructure.
Deal spans facility design, chips and software
Under the agreement, the two companies will work together on physical data center architecture as well as deployment of AMD Instinct GPUs, EPYC CPUs and ROCm software. As part of the broader strategic relationship, AMD will also receive warrants to buy Core Scientific common stock at market price.
Core Scientific operates facilities across seven states, including Alabama and Texas, and has been shifting its focus toward AI and high-performance computing, or HPC. Based on 437MW of capacity that began billing in mid-July, the company’s annualized revenue run rate has reached $635 million, according to the input text.
AMD Chief Strategy Officer Mathew Hein said that as AI deployment accelerates, facilities with scale and stable power supply are becoming essential. Core Scientific CEO Adam Sullivan said the company’s ability to deliver large-scale, high-density infrastructure can support AMD’s technology roadmap.
Stocks moved in opposite directions after the announcement
After the news, Core Scientific shares rose about 6% in premarket trading. AMD fell about 4% before the open, and the stock finished the session down 8%.
The input text said market analysis pointed to broader weakness in semiconductor stocks as the main reason for AMD’s softer premarket trade, with investors weighing the benefit of the deal against concerns over heavy AI spending and chip valuations.
Power and land are becoming core assets in the AI buildout
As cloud providers keep building data centers, power supply and land are becoming scarce resources. The input text also noted that NVIDIA set up its AI Factory Research Center in Virginia in late October last year. The center is set to adopt the Vera Rubin platform first and serve as the foundation for the Omniverse DSX blueprint supporting multi-generation, gigawatt-scale data center construction.
NVIDIA is also working with Cisco, Dell Technologies, HPE, Supermicro, and cloud and compute companies including CoreWeave, Lambda, Together AI and xAI to expand AI infrastructure in the United States.
Against that backdrop, the long-term Core Scientific-AMD agreement adds to a pattern in which chip companies secure capacity directly through data center operators as competition for AI compute infrastructure intensifies.