Core Scientific signed a 15-year AI infrastructure deal with AMD, securing over $14 billion in potential revenue from an initial 529 MW of capacity. The deal, which could expand to 2.5 GW, accelerates Core Scientific's pivot from bitcoin mining to AI colocation. This shift is reflected in its Q2 earnings, where colocation revenue surged to $136.7 million while self-mining revenue declined.
AMD infrastructure partnership terms
- ▪As part of the deal, AMD received warrants to purchase up to 30 million Core Scientific shares at $23.47 per share
- ▪Core Scientific signed a 15-year partnership with Advanced Micro Devices (AMD) to provide AI data center infrastructure
- ▪Core Scientific and AMD will collaborate on data-center design and the deployment of AMD's Instinct GPUs, EPYC processors, and ROCm software
- ▪The initial capacity is expected to generate more than $14 billion in base contracted revenue for Core Scientific
- ▪The partnership is anchored by 15-year leases for 529-530 megawatts of U.S. AI capacity, expected to be available starting in 2027
- ▪AMD directly leased 377 MW in Texas and Oklahoma, while an unnamed cloud provider leased 152 MW in Alabama and Georgia under agreements supported by AMD
Core Scientific capacity expansion
- ▪The partnership with AMD could eventually expand to support up to 2.5 gigawatts of leasable data center capacity
- ▪AMD has the right to reserve an additional 1,925 MW of capacity through December 28, 2028, under certain conditions
- ▪Core Scientific's total leased customer power capacity now stands at approximately 1.1 GW, representing over $24 billion in potential contracted revenue
Pivot from bitcoin mining
- ▪The partnership with AMD accelerates Core Scientific's strategic pivot from bitcoin mining toward providing AI data center services
- ▪Multiple Bitcoin mining companies are diversifying into AI and high-performance computing (HPC) infrastructure to secure more stable, long-term revenue streams
Bitcoin treasury holdings
- ▪Core Scientific held 848 BTC, valued at $49.7 million, on June 30, 2026
- ▪In the first quarter of 2026, Core Scientific sold 2,385 BTC for $208.2 million
Block ASIC agreement termination
- ▪The termination of the Block agreement resulted in Core Scientific recording a $41.9 million charge
- ▪Core Scientific terminated a 2024 agreement to purchase 3-nanometer bitcoin-mining chips from Block, which represented about 15 EH/s of hashrate
Colocation revenue growth
- ▪Core Scientific's gross profit increased to $70 million in Q2 from $5 million in the same period last year
- ▪Despite revenue growth, Core Scientific reported a Q2 net loss of $1.15 billion, primarily due to a non-cash charge related to its warrants
- ▪Core Scientific's second-quarter revenue increased to $164.2 million, more than double the $78.6 million from the same period a year earlier
- ▪In the second quarter of 2026, Core Scientific's colocation services generated $136.7 million in revenue, while self-mining revenue fell 66% to $21.5 million
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