Bitcoin miner Core Scientific has announced the expansion of its hosting contract with artificial intelligence computing firm CoreWeave.
According to an Oct. 22 announcement, the extended agreement adds 120 megawatts (MW) of power to CoreWeave’s high-performance computing (HPC) operations, bringing the total to 500 MW across six Core Scientific sites.
The revised partnership is expected to generate up to $8.7 billion in revenue over the next 12 years for Core Scientific.
Core Scientific’s stock, CORZ, is up 5.1% at the time of this writing, trading at $13.48 on the Nasdaq exchange.
Source: Google Finance
The site modifications required to accommodate the additional capacity are expected to begin in the second half of 2025, with the infrastructure set to become operational in the second half of 2026.
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All capital investments required to upgrade Core Scientific’s data centers will be funded by CoreWeave, with $180 million in infrastructure investments to be credited against hosting fees. The expanded contract also allows for two potential five-year renewal terms.
CoreWeave is a specialized cloud infrastructure provider that focuses on computing solutions for AI, machine learning and other compute-intensive applications. The partnership will allow the company to expand its infrastructure.
As for Core Scientific, the amended deal broadens its AI services and diversifies its revenue streams just a few months after emerging from bankruptcy after being heavily exposed to Bitcoin (BTC) price fluctuations in 2022.
With 1.2 gigawatts of total power, the company plans to provide about 700 MW for HPC hosting, while the other 500 MW of power will continue to be used for its Bitcoin mining operations.
“There is significant demand for infrastructure to support next-generation compute workloads,” said Adam Sullivan, Core Scientific’s CEO. He continued:
“We are now working to expand power allocations at some of our existing data centers to increase our capacity for HPC hosting while also continuing to evaluate new sites in our pipeline to expand our business opportunity.”
The companies first announced their partnership in June 2024, with a 12-year agreement worth $3.5 billion. At the time, the infrastructure provided to CoreWeave accounted for about 18% of Core Scientific’s total operational capacity.
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