Core Scientific has entered a major infrastructure partnership with Advanced Micro Devices that secures the chipmaker access to substantial U.S. data-center capacity for artificial intelligence workloads. The agreement centers on 15-year leases covering 529 megawatts, with AMD holding rights to reserve additional capacity that could bring the total to roughly 2.5 gigawatts.

Capacity under the initial leases is scheduled to support customer deployments beginning in 2027. AMD will directly lease 377 megawatts across facilities in Pecos and Hunt County, Texas, and Muskogee, Oklahoma. An unnamed cloud provider, supported by AMD, has leased a further 152 megawatts at sites in Auburn, Alabama, and Dalton, Georgia.

Deal Structure and Technology Collaboration

The companies will work jointly on physical infrastructure design and the rollout of AMD Instinct graphics processing units, EPYC processors, and ROCm software. The arrangement is intended to serve cloud providers, enterprises, and model developers seeking high-density computing resources.

Core Scientific stated that the 529 megawatts of leased capacity could generate more than $14 billion in base contracted revenue over the life of the agreements. With the new commitments, the company’s total leased customer capacity rises to about 1.1 gigawatts, corresponding to potential contracted revenue exceeding $24 billion. As of mid-July the firm was already billing customers for 437 megawatts, equal to roughly $635 million in annualized colocation revenue.

As part of the transaction, AMD received market-priced warrants to purchase up to 30 million shares of Core Scientific common stock at $23.47 per share. Approximately 6.5 million of those warrants vested upon signing of the initial leases, with additional portions scheduled to vest as further capacity is contracted.

Pivot Away from Bitcoin Mining

The partnership advances Core Scientific’s transition from bitcoin mining toward high-density colocation services for artificial intelligence. In the second quarter, colocation accounted for $136.7 million, or 83 percent, of the company’s $164.2 million in total revenue. Self-mining revenue declined 66 percent to $21.5 million over the same period.

Core Scientific recently terminated an agreement to acquire 3-nanometer bitcoin-mining chips from Block that would have represented roughly 15 exahash per second of hashrate. The termination resulted in a $41.9 million charge. The company continues to generate some revenue from its own mining operations and from hosting services for other miners while converting remaining sites to AI-ready infrastructure.

As of June 30, Core Scientific held 848 bitcoin valued at $49.7 million. Earlier in the year it sold 2,385 bitcoin for $208.2 million to help fund the strategic shift. The firm operates data centers in Alabama, Georgia, Kentucky, North Carolina, North Dakota, Oklahoma and Texas.

Market Response

Core Scientific shares rose between 3 percent and 5.6 percent in pre-market trading after the announcement before declining more than 3 percent once regular trading began, amid a broader equity-market pullback. The stock has fallen more than 12 percent over the past week yet remains up more than 40 percent year-to-date.

AMD shares declined between 4 percent and 8 percent on the day as semiconductor stocks faced selling pressure. Investors have grown more selective about capital-intensive AI infrastructure spending, with attention also focused on upcoming earnings and recent insider sales at the chipmaker.

The AMD agreement adds a significant customer alongside Core Scientific’s existing relationship with CoreWeave. The company has not disclosed a separate revenue figure solely attributable to the new partnership beyond the contracted lease values already outlined. Execution of the build-out, power availability and the pace at which additional capacity is reserved will determine how quickly the arrangement contributes to results.