Core Scientific, a leading Bitcoin miner, has recently made headlines by signing a groundbreaking 12-year deal with cloud provider CoreWeave. This partnership will see Core Scientific deliver an impressive 200MW of infrastructure to support CoreWeave’s machine learning operations.
The Texas-based company revealed that the agreement will focus on providing resources for training artificial intelligence, signaling a strategic move into the realm of AI for the crypto mining giant. This shift comes after Core Scientific emerged from bankruptcy, showcasing a renewed focus on diversifying its offerings beyond traditional crypto mining.
Under the terms of the deal, Core Scientific will provide infrastructure support for CoreWeave’s NVIDIA GPU operations dedicated to AI training. The modifications are expected to kick off in the latter half of 2024, with full operational capacity anticipated by the first half of 2025. The company estimates that this venture will yield a staggering $3.5 billion in revenue, marking a significant financial opportunity in the AI compute sector.
Core Scientific’s CEO, Adam Sullivan, expressed enthusiasm about the new contracts with CoreWeave, highlighting the potential for growth and profitability in the AI space. He emphasized the importance of capturing opportunities in AI compute while leveraging the company’s established presence in bitcoin mining.
With approximately $300 million slated for capital investments in infrastructure, Core Scientific aims to bolster its hosting business and enhance its earnings potential through this partnership. The unique structure of the agreements allows for a capital credit against hosting payments, capped at 50% of monthly fees until fully repaid, offering a flexible financial arrangement.
Founded in 2017, Core Scientific has experienced rapid growth in the crypto mining industry, attracting substantial equity funding and establishing a strong market position. Despite facing financial challenges in the past, the company’s resilience and strategic partnerships have paved the way for a promising future in AI and data center operations.
As Core Scientific embarks on this transformative journey into AI training and machine learning, the collaboration with CoreWeave sets the stage for innovation and growth in the evolving landscape of digital technologies. Moving forward, the company’s foray into AI presents exciting opportunities for expansion and diversification in the competitive tech industry.
