AMD announced Tuesday it has reached an agreement with Core Scientific that will give the chip company access to as much as 2.5 gigawatts of data center capacity, as it works to keep up with rapidly growing demand for artificial intelligence computing power.
Following the announcement, Core Scientific shares climbed 6% in premarket trading. AMD’s stock, however, fell 4%, moving in line with other chipmakers.
The push for electricity, land, and data center space has intensified as cloud computing companies and large enterprises pour money into AI infrastructure.
As part of the agreement, AMD will receive market-priced warrants allowing it to purchase Core Scientific common stock, contingent on certain commercial conditions being met. Neither company disclosed the financial details of the arrangement.
Starting in 2027, AMD will have access to more than 500 megawatts of Core Scientific’s AI-ready data center capacity — space that AMD’s customers can use to run artificial intelligence systems. That capacity has the potential to grow to 2.5 gigawatts over time.
Core Scientific has been transitioning away from cryptocurrency operations and toward hosting AI and high-performance computing workloads. As part of this new partnership, the company will also collaborate with AMD on the physical design of data center infrastructure and the rollout of AMD’s chips and software.
Mathew Hein, chief strategy officer of corporate development at AMD, spoke to the significance of the deal: “Core Scientific’s extensive portfolio of AI-ready data centers expands access to the infrastructure our customers need to deploy AMD AI solutions at scale.”
