Core Scientific Lands $14 Billion AMD AI Data Center Deal
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Key Takeaways
- AMD secures an initial 500 MW of U.S. data center capacity with the right to expand to 2.5 GW.
- Core Scientific issued AMD warrants for 30 million shares, with 6.5 million shares vesting upon lease execution.
Core Scientific (NASDAQ: CORZ) has agreed to provide Advanced Micro Devices with about 530 megawatts of US data-center capacity under 15-year contracts, giving the chipmaker infrastructure for customers deploying its AI systems.
The agreements span five sites and represent more than $14 billion of potential base contracted revenue for Core Scientific, the data center operator said Tuesday alongside its second-quarter results. The partnership could eventually expand to as much as 2.5 gigawatts, though that additional capacity has not been firmly committed.
Initial deployments are scheduled to begin in 2027. AMD will use the capacity to support customers installing systems built around its Instinct graphics processors, EPYC central processors and ROCm software. The companies will also collaborate on the physical design of the facilities, according to their joint announcement.
Core Scientific shares rose about 4% in premarket trading on Tuesday as of publishing. The stock had closed Monday at $20.74 after falling 8.8%. The transaction gives AMD greater access to the power, land and cooling infrastructure needed to deploy large clusters of AI accelerators. Those resources have become a constraint on industry expansion as technology companies race to build increasingly energy-intensive computing systems.
