AMD and Core Scientific Partner to Deploy AI Chips with Up to 2.5 Gigawatts of Capacity
Advanced Micro Devices (NASDAQ: AMD) has partnered with data center provider Core Scientific (NASDAQ: CORZ) in a multi-year agreement that begins with over 500 megawatts of U.S. data center capacity by 2027 and could expand to up to 2.5 gigawatts. The collaboration aims to address the infrastructure bottleneck for AI accelerators, which require specialized facilities including power, cooling, networking, and high-density rack design. AMD will supply its Instinct GPUs, EPYC CPUs, and ROCm software while Core Scientific provides the physical data center infrastructure. Although no GPU purchase commitment is disclosed in the agreement, AMD stands to benefit by converting customer interest into actual installations rather than leaving demand unmet. The partnership includes 15-year agreements for approximately 530 MW across five sites with over $14 billion of potential base revenue. The deal also gives AMD warrants to buy Core Scientific stock at market price under certain conditions, aligning the two companies' interests but potentially diluting existing CORZ shareholders if exercised. For Core Scientific, this partnership represents a strategic pivot from Bitcoin mining toward AI colocation hosting and validates its long-term business strategy.
Topics: AI AMD Instinct GPUs Data Centers Partnership