AMD Leases Data Center Capacity From Core Scientific in Major Deal
Advanced Micro Devices (AMD) has entered into a significant agreement with data center provider Core Scientific, securing over 500 megawatts of U.S. capacity across five locations for its operations and an undisclosed cloud partner backed by AMD's credit. The deal is projected to generate more than $14 billion in base revenue over the next 15 years and includes options that could expand the partnership up to 2.5 gigawatts by December 2028. AMD also received warrants for up to 30 million Core Scientific shares, with about 6.5 million vesting immediately after lease execution. The deal highlights AMD's strategic push into AI infrastructure and physical capacity expansion beyond just chip sales. However, the market reacted mixedly: while Core Scientific’s stock rose sharply in premarket trading, AMD saw a decline. The broader context includes ongoing concerns about financing for large-scale AI projects and competition from Asian chipmakers, which contributed to declines across some semiconductor stocks.
Topics: AI infrastructure AMD Core Scientific data centers lease agreement