Core Scientific Announces a $6.7B Expansion of Its Partnership With AI-Focused Cloud Provider CoreWeave

The deal marks a pivotal shift in Core Scientific's business strategy from cryptocurrency mining to artificial intelligence infrastructure.

Core Scientific, a major bitcoin mining company, is expanding its partnership with CoreWeave, an AI-focused cloud provider, in a deal valued at $6.7 billion over 12 years.

Core Scientific will expand its high-performance computing (HPC) infrastructure by 112 megawatts (MW) to a total of 382 MW. This additional capacity will be used to host CoreWeave's NVIDIA graphics processing units (GPUs), which are crucial for AI and machine learning applications.

The expanded deal is expected to generate an additional $2 billion in revenue over 12 years, on top of the $4.7 billion anticipated from existing agreements. This brings the total potential revenue from the CoreWeave partnership to $6.7 billion, starting in the first half of 2026.

Core Scientific's CEO, Adam Sullivan, stated,

“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure and the unique ability of our team to deliver it.”

The announcement had an immediate impact on Core Scientific's stock price, which surged by approximately 18% following the news. As of the latest report, the company’s shares were trading at $9.74.

CoreWeave will finance all capital investments required to transform Core Scientific's existing infrastructure into state-of-the-art, application-specific data centers tailored for dense HPC. The modifications are scheduled to begin in the latter half of 2024, with operations expected to commence in early 2026.

This expansion comes at a time when many bitcoin mining firms are pivoting to service AI clients. The shift is driven by decreased profitability in crypto mining, especially following the recent bitcoin halving event.

Core Scientific's move reflects a broader trend in the industry, as companies are using their existing infrastructure and power contracts to meet the growing demand for AI computing resources.

The transition from bitcoin mining to AI infrastructure is not without challenges. As Needham analysts highlighted in a May report, much of the existing mining infrastructure would need significant modifications to meet HPC requirements.

However, Core Scientific's Sullivan is optimistic about the company's future. He highlighted the planned integration of Block's new 3-nanometer ASIC chip for next year and the thriving HPC business as key aspects of Core Scientific's growth strategy.

This deal marks a significant shift in Core Scientific's business strategy from cryptocurrency mining to artificial intelligence infrastructure. Core Scientific, a leading bitcoin miner, is expanding its partnership with CoreWeave, an AI-focused cloud provider, in a deal valued at $6.7 billion over 12 years.

The partnership will see Core Scientific expand its high-performance computing (HPC) infrastructure by 112 megawatts (MW) to a total of 382 MW. This additional capacity will be used to host CoreWeave's NVIDIA graphics processing units (GPUs), which are crucial for AI and machine learning applications.

The expanded deal is expected to generate an additional $2 billion in revenue over 12 years, on top of the $4.7 billion anticipated from existing agreements. This brings the total potential revenue from the CoreWeave partnership to $6.7 billion, starting in the first half of 2026.

Core Scientific’s CEO, Adam Sullivan, stated,

“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure and the unique ability of our team to deliver it.”

The announcement had an immediate impact on Core Scientific's stock price, which surged by approximately 18% following the news. As of the latest report, the company’s shares were trading at $9.74.

CoreWeave will finance all capital investments required to transform Core Scientific's existing infrastructure into state-of-the-art, application-specific data centers tailored for dense HPC. The modifications are scheduled to begin in the latter half of 2024, with operations expected to commence in early 2026.

This expansion comes at a time when many bitcoin mining firms are pivoting to service AI clients. The shift is driven by decreased profitability in crypto mining, especially following the recent bitcoin halving event.

Core Scientific's move reflects a broader trend in the industry, as companies are using their existing infrastructure and power contracts to meet the growing demand for AI computing resources.

Der Übergang vom Bitcoin-Mining zur KI-Infrastruktur ist nicht ohne Herausforderungen. Wie Needham-Analysten in einem Bericht vom Mai hervorhoben, müsste ein Großteil der bestehenden Bergbauinfrastruktur erheblich modifiziert werden, um die HPC-Anforderungen zu erfüllen.

Sullivan von Core Scientific ist jedoch optimistisch, was die Zukunft des Unternehmens angeht. Er hob die geplante Integration des neuen 3-Nanometer-ASIC

von Block hervor

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