Core Scientific Signs $14B AI Infrastructure Deal with AMD

Data center operator Core Scientific has entered into a significant 15-year partnership with Advanced Micro Devices (AMD) for AI infrastructure, marking a strategic shift away from bitcoin mining. The agreement encompasses 529 megawatts of AI capacity, which is anticipated to yield over $14 billion in base contracted revenue. AMD has the option to reserve up to 1.9 gigawatts of additional capacity by 2028, bringing the total potential to around 2.5 gigawatts.

Under the agreement, AMD will lease 377 megawatts at Core Scientific's facilities in Texas and Oklahoma, with an unnamed cloud provider leasing an additional 152 megawatts across two locations. This partnership also includes collaboration on data center design and the deployment of AMD's graphics processing units and processors.

The move comes in response to the declining revenue from Core Scientific's mining operations. In its second-quarter report, the company indicated that self-mining revenue had fallen significantly, prompting a shift towards AI-based services. Following the termination of its agreement with Block to buy bitcoin mining chips, Core Scientific registered a charge of $41.9 million. This agreement was intended for advanced 3-nanometer chips with expected hashrate capabilities.

Core Scientific's leased customer capacity will now rise to approximately 1.1 gigawatts, which represents a potential contracted revenue stream exceeding $24 billion. The company reported billing customers for 437 megawatts as of mid-July, translating to an annualized colocation revenue of around $635 million.

This deal highlights the broader trend of data center operators diversifying their service offerings as the bitcoin mining sector faces challenges. Core Scientific's transition to AI infrastructure reflects shifting market demands and its need to remain competitive in a rapidly evolving technology landscape.