Core Scientific inks up to 2.5 GW AI capacity deal with AMD as shares slip
Core Scientific (CORZ) agreed to provide AMD with up to 2.5 gigawatts of data-center capacity for customers deploying AMD’s AI systems, with capacity expected to come online starting in 2027, the companies said in a joint announcement. The arrangement pairs AMD’s compute stack — Instinct GPUs, EPYC CPUs and the ROCm software platform — with Core Scientific’s power and high-density data-center infrastructure rather than being a straight hardware order.
Key deal points and unknowns
- Capacity: Up to 2.5 GW, available from 2027.
- Tech: AMD Instinct GPUs, EPYC processors and ROCm software.
- Collaboration: The companies will co-design the physical infrastructure needed for high-density AI workloads.
- Financials and customers: Neither side disclosed the financial value, end customers, or a timetable for bringing the full 2.5 GW online.
- Equity component: AMD will receive market-priced warrants to buy Core Scientific common stock, subject to commercial conditions; the potential size of any stake was not disclosed.
Why it matters
The deal is a notable example of Bitcoin miners repurposing large, power-rich sites for AI computing. Core Scientific built its business on Bitcoin mining but has been redirecting capital and power toward high-density colocation services that cloud providers and AI developers are seeking. Making AMD a major commercial partner could help Core Scientific accelerate that transition — but much about the economics and timing remains unclear.
Investor reaction and balance-sheet context
- Core Scientific shares initially jumped more than 5% in premarket trading after the announcement, but reversed after the open and fell more than 4% as a broader market sell-off hit equities. The stock has dropped more than 12% over the past week, though it remains up over 40% year-to-date in 2026.
- For U.S. investors, AMD’s warrants are a potential dilution risk if exercised; the eventual impact depends on the number of shares and the commercial conditions attached.
- To fund its transition, Core sold 2,385 BTC earlier in 2026 and still holds 848 BTC, according to BitcoinTreasuries. The company continues to mine crypto for its own account and provide hosting to other miners while converting facilities for AI colocation.
Sector context and competition
Core Scientific joins several publicly traded miners chasing AI infrastructure revenue. Examples include:
- Marathon Digital (MARA): expanded AI footprint via a Texas site acquisition.
- TeraWulf: signed a 20-year data-center deal with Anthropic in July.
- Hut 8 and IREN: each announced multibillion-dollar AI infrastructure deals recently — Hut 8’s second 15-year lease at Beacon Point is valued at $9.8 billion, while IREN disclosed $2.8 billion in multiyear AI cloud contracts.
What to watch next
Investors and industry watchers will be looking for disclosures that clarify:
- The financial value of the AMD agreement and any construction spending estimates.
- A deployment schedule and milestones for getting the 2.5 GW online.
- The final terms and potential dilution from AMD’s warrants.
- Progress converting former mining sites, including power availability, construction timelines and customer demand.
Bottom line
The AMD pact gives Core Scientific a substantial contracted demand target as it shifts from Bitcoin mining to AI infrastructure. But the ultimate payoff depends on timely execution, capital costs, and how profitably Core can deliver and operate the high-density capacity — details that remain to be disclosed.
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