Core Scientific’s shares dropped over 4 percent after the company revealed it will provide AMD with up to 2.5 gigawatts of data center capacity starting in 2027. This major capacity deal is part of a strategic shift for Core Scientific as it moves from Bitcoin mining toward supporting AI workloads.
Under the agreement, AMD will deploy its Instinct GPUs, EPYC processors, and ROCm software platform at Core Scientific’s facilities, which are being redesigned for high-density computing. This goes beyond a typical hardware supply contract by combining AMD’s chip technology with Core Scientific’s power and infrastructure, potentially positioning AMD as a key partner in Core Scientific’s transition to AI-focused data centers.
In addition, AMD will receive market-priced warrants to buy Core Scientific shares, though the stake size remains undisclosed and contingent on commercial conditions. Core Scientific has been gradually repurposing crypto mining sites for colocation services aimed at AI clients, a pivot backed by its recent sale of 2,385 Bitcoins earlier this year to fund liquidity needs amid this shift. The company still holds 848 BTC but increasingly relies on hosting and data center services to generate revenue.
This arrangement highlights the growing intersection of chipmakers and data infrastructure providers as AI demand intensifies. AMD benefits from guaranteed access to large-scale data center power, while Core Scientific secures a prominent customer as it diversifies away from volatile crypto markets.
This material is for informational purposes and does not constitute financial advice.
