Core Scientific Secures $3.5B Deal to Expand AI and Machine Learning Operations
Core Scientific, a major Bitcoin mining firm, has entered into a 12-year agreement with AI cloud provider CoreWeave. The deal involves Core Scientific providing 200 megawatts (MW) of infrastructure for CoreWeave's high-performance computing (HPC) operations. This partnership is expected to generate over $3.5 billion in total cumulative revenue for Core Scientific over the duration of the contract, with an estimated average annual revenue of $290 million.
As part of the agreement, CoreWeave will provide a $300 million loan to Core Scientific to finance infrastructure improvements, which will be repaid through monthly hosting fees. The infrastructure modifications are anticipated to be completed by the first half of 2025. This move marks a significant diversification for Core Scientific, traditionally known for its Bitcoin mining operations, as it expands into the rapidly growing AI data center market. This strategic shift aims to balance the company's portfolio between Bitcoin mining and alternative computing hosting, enhancing cash flow and mitigating risk while maintaining exposure to Bitcoin's potential upside.
