Crypto mining firm Core Scientific has signed a 12-year deal with cloud provider CoreWeave to provide resources for training artificial intelligence.
Bitcoin miners are now diversifying their portfolios by branching into areas tied to artificial intelligence (AI), with Core Scientific, a crypto mining giant that recently emerged from bankruptcy, now intensifying its focus on machine learning.
In a press release on Jun. 3, the Texas-based company said it signed a series of 12-year contracts with CoreWeave, a former crypto mining company which now specializes on cloud services for AI.
According to the agreement, Core Scientific will provide approximately 200 megawatts of infrastructure to support CoreWeave’s NVIDIA GPU operations for AI training. The infrastructure modifications are slated to begin in the second half of 2024 and become fully operational in the first half of 2025. Core Scientific projects the deal will generate over $3.5 billion in revenue.
“Our new contracts with CoreWeave position us to transform our hosting business and our earnings power by capturing exciting growth opportunities in AI compute, one of today’s most dynamic technology segments, while also maintaining our strong bitcoin mining franchise.”
Core Scientific CEO Adam Sullivan
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The firm disclosed that about $300 million of capital investments in its infrastructure will be credited against hosting payments, capped at 50% of monthly fees until fully repaid. Additionally, the agreements offer options for further expansion, potentially making Core Scientific “one of the largest data center operators in the United States.”
Founded in 2017 by Mike Levitt and Darin Feinstein, Core Scientific quickly rose to prominence in the crypto mining industry, raising over $50 million in equity funding from investors. However, the volatile nature of the crypto market led to financial difficulties, pushing the firm to the brink of bankruptcy in late 2022 due to a series of bankruptcies, including FTX, Celsius Network, and Three Arrows Capital. In early 2024, the company emerged from bankruptcy proceedings.
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