Core Scientific's stock climbed 4.7% in early trading after unveiling a massive partnership with semiconductor giant AMD. The agreement grants AMD access to over 500 megawatts of U.S. data center capacity starting in 2027, with an option to expand up to 2.5 gigawatts. This infrastructure deal, locked in for 15 years across five sites, represents more than $14 billion in potential contracted revenue for Core Scientific.
Despite Core Scientific reporting a wider-than-expected second-quarter loss of $3.32 per share, its revenue beat estimates, reaching $164.2 million, more than doubling year over year. Investors seemed to focus on the AMD deal rather than the loss, especially as AMD will receive market-priced warrants to buy Core Scientific stock under defined commercial conditions.
Long-Term AI Infrastructure Collaboration
The partnership goes beyond mere capacity leasing. Both companies plan to jointly develop physical infrastructure and deploy AMD's GPUs, CPUs, and software stacks designed for AI workloads. AMD’s access to this scalable data center power aligns with its push into AI solutions, though the chipmaker's own stock fell 4.6% in premarket trading amid a broader market decline in semiconductor shares.
Core Scientific's move marks a significant step in AI infrastructure, as enterprises increasingly seek dedicated, large-scale capacity. The deal’s scale and duration provide a rare level of certainty in a volatile industry, potentially positioning Core Scientific as a key player in powering next-generation AI applications.
This article is for informational purposes and does not constitute financial advice.
