AMD Partners with Core Scientific to Secure 2.5GW of AI Data Center Capacity
AMD has announced a partnership with Core Scientific to secure over 500 megawatts of AI data center capacity starting in 2027, with the option to expand up to 2.5 gigawatts. This capacity will allow AMD's customers to deploy large-scale AI solutions using AMD's hardware and software. As the demand for AI computing surges, securing physical infrastructure, land, and power has become a critical bottleneck for chipmakers and cloud providers. This strategic partnership ensures AMD has the necessary power capacity to support its enterprise customers, strengthening its position in the competitive AI hardware market. Under the agreement, AMD will receive warrants to purchase Core Scientific's common stock at market price subject to certain commercial conditions, though specific financial terms were not disclosed. Additionally, Core Scientific will collaborate with AMD on physical infrastructure design and deploy AMD's chips and software solutions.
## BACKGROUND
Core Scientific, historically known as a major cryptocurrency mining company, has increasingly pivoted toward hosting High-Performance Computing (HPC) and AI workloads. High-Performance Computing (HPC) involves aggregating computing power to deliver much higher performance than typical desktop computers to solve complex problems. GPU colocation services allow companies to rent space, power, and cooling in data centers specifically optimized for power-hungry AI training and inference workloads.