CoreWeave, a leading cloud computing provider, has recently expanded its partnership with Bitcoin miner Core Scientific by exercising an option to acquire additional infrastructure for its NVIDIA graphics processing units (GPUs).
This move, agreed upon earlier in June, builds on an existing agreement and adds an additional $1.225 billion to the revenue expected by Core Scientific from this deal.
Infrastructure Upgrade and Expansion
Under the terms of the expanded agreement, Core Scientific will upgrade its facilities in Austin, Texas, to accommodate an extra 70 megawatts (MW) of infrastructure for CoreWeave, set to be operational in the second half of 2025.
This development comes as Core Scientific reports being a month ahead of schedule in preparing to host the increased capacity for CoreWeave.
Source: Core Scientific
The initial agreement made in early June had already set out plans for 200 MW of infrastructure, valued at $3.5 billion over 12 years. The recent expansion thus brings the total infrastructure to 270 MW. CoreWeave will cover the capital investments required for this expansion.
Adam Sullivan, the CEO of Core Scientific, highlighted the company’s strategic vision in a recent statement. He pointed out that many data centers constructed in the past two decades are inadequate for future computing needs.
Sullivan emphasized that Core Scientific is strategically positioned to design and build application-specific data centers (ASDCs) that meet these evolving requirements.
He expressed the company’s intention to continue transforming and expanding both its hosting business and its earning capabilities, while simultaneously enhancing its cryptocurrency mining capacity.
Impact of Bitcoin Halving and AI Opportunities
This strategic move comes in the wake of the April Bitcoin halving event, which saw mining rewards cut by 50%, prompting miners like Core Scientific to seek alternative revenue streams.
In this environment, artificial intelligence (AI) presents a new avenue for revenue, particularly after the halving’s impact on traditional mining operations.
Earlier in the month, Core Scientific had announced that its contract with CoreWeave, described as an AI Hyperscaler, was expected to generate an average annual revenue of approximately $290 million, totaling over $3.5 billion across the 12-year span of the agreement.
CoreWeave founders, Brannin McBee (left) and Michael Intrator. Source: WSJ
The broader mining industry, too, is increasingly turning to AI for revenue opportunities. For instance, on June 25, Canadian mining firm Hive Digital Technologies reported an 8% increase in its year-on-year revenue, totaling $114.5 million for the financial year ending March 31.
Hive’s expansion efforts have been aimed at offering high-performance computing (HPC) services to sectors such as gaming, AI, and graphics rendering, indicating its integration into the global data center infrastructure boom.
Hive operates facilities across Canada, Iceland, and Sweden, illustrating the geographic spread and strategic positioning of companies capitalizing on the growing demand for advanced computing capabilities in various industries.
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