BTC
by BSC News
June 4, 2024
The agreement involves providing 200 MW of data center space, marking Core Scientific's significant expansion into AI and HPC hosting.
Core Scientific, a leading blockchain infrastructure provider and one of North America's largest digital asset miners announced an expansion into the AI and high-performance computing (HPC) space.
The company has signed a 12-year agreement with CoreWeave, a GPU cloud provider backed by Nvidia, to provide 200 MW of data center space. This deal is expected to generate over $3.5 billion in cumulative revenue for Core Scientific.
Adam Sullivan, CEO of Core Scientific, stressed the strategic benefits of this partnership. He noted the increasing demand for high-power data center sites and Core Scientific’s ability to deliver power more quickly than greenfield projects. This capability positions the company to meet customer needs effectively.
The partnership allows Core Scientific to balance its portfolio between Bitcoin mining and alternative compute hosting, maximizing cash flow and minimizing risk while maintaining exposure to Bitcoin’s potential upside.
As per reports, Core Scientific will rent out 18% of its total infrastructure to CoreWeave, maintaining its Bitcoin mining capacity while venturing into AI and HPC hosting. The agreement also includes options for CoreWeave to expand its hosting footprint with Core Scientific at additional sites over next 60 to 90 days.
As of April 2024, Core Scientific had 745 MW of operational infrastructure and 372 MW of partially built infrastructure at its Texas data centers.
This is not the first collaboration between Core Scientific and CoreWeave. In March 2024, Core Scientific agreed to provide up to 16 MW of data center infrastructure to support CoreWeave's AI and HPC operations. The partnership dates back to 2019, with Core Scientific delivering 16 MW of HPC hosting capacity ahead of schedule at its new Austin data center earlier this year.
The announcement comes nearly five months after Core Scientific received court approval to exit bankruptcy. This move was necessitated by financial challenges from declining crypto prices and rising energy costs.
Under Sullivan’s leadership, the company has restructured its debt and pivoted towards more sustainable business avenues, including this strategic shift into AI and HPC hosting.
On the other hand, CoreWeave, formerly known as Atlantic Crypto, was founded in 2017 by Michael Intrator, Brian Venturo, and Brannin McBee. In May 2024, CoreWeave raised a $7.5 billion debt facility from Blackstone, Magnetar, and Coatue, valuing the company at $19 billion.
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Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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