Core Scientific Partners with CoreWeave in $3.5 Billion Deal to Expand Operations to AI Infrastructure

Core Scientific, a leading Bitcoin mining firm in the U.S., is doubling down on providing its services to artificial intelligence (AI) companies as it tries to expand its operations and navigate the market challenges posed by the recent Bitcoin halving.

On June 4, the company announced a $3.5 billion partnership with AI cloud services provider CoreWeave. As part of the agreement, Core Scientific will deliver 200 megawatts (MW) of infrastructure to support CoreWeave’s high-performance computing (HPC) operations.

The infrastructure provided to CoreWeave will constitute a notable portion of Core Scientific’s resources, making up roughly 18% of its total operational capacity.

Core Scientific currently operates 745 MW of infrastructure and had 372 MW of partially built infrastructure at its two Texas data centres as of April 2024.

This significant partnership is projected to generate over $3.5 billion in cumulative revenue for Core Scientific over the initial 12-year term, averaging about $290 million annually.

This isn’t the first collaboration between the two companies. Corescientific hosted CoreWeave’s GPUs in its facilities from 2019 -2022. In March 2024, it committed to providing up to 16 MW of data centre infrastructure for CoreWeave’s AI and HPC operations in another multi-year deal.

Notably, this development comes after Core Scientific released its 2024 first-quarter earring report, which showcased significant improvements in its financial performance since emerging from bankruptcy. In the report, the company revealed plans to expand its operations and take advantage of the market following the recent Bitcoin halving event.

According to Core Scientific CEO Adam Sullivan, the new deal with CoreWeave will help it provide the most value for its shareholders as it expands its operations. In his words:

“We are capitalising on one of the largest high-power digital infrastructure portfolios that we will continually seek to expand to deliver significant, resilient and sustainable value for our shareholders.”

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