Core Scientific Partners With AMD to Secure 2.5 GW of AI Data Center Capacity

• Core Scientific and AMD announced a strategic partnership granting AMD access to up to 2.5 gigawatts of data center capacity, with over 500 MW available in the U.S. starting in 2027.
• Core Scientific reported a 109% year-over-year revenue increase in Q2 2026, driven by a pivot from Bitcoin mining to high-density colocation services.
• The company was upgraded to Buy by Freedom Capital Markets, citing strong execution on its infrastructure transition and ahead-of-schedule progress on contracted power delivery.
• Core Scientific appointed former Penguin Solutions CEO Mark Adams to its board to support its expansion in AI infrastructure and semiconductors.

Core Scientific Inc. has established a strategic infrastructure partnership with Advanced Micro Devices (AMD) to accelerate the deployment of AI computing solutions. The agreement secures AMD access to up to 2.5 gigawatts of data center capacity, with 500 megawatts of U.S. infrastructure becoming available starting in 2027. This collaboration allows AMD to help model builders and enterprises deploy AI compute faster and at greater scale.

The partnership involves joint efforts on physical infrastructure design and the deployment of AMD Instinct GPUs and EPYC CPUs, and ROCm software. Core Scientific will provide high-density infrastructure to address industry-wide scarcity of power, land, and data center space required for next-generation AI workloads. As part of the agreement, AMD will receive market-priced warrants to purchase Core Scientific common stock, subject to commercial conditions.

How Is Core Scientific Transitioning to AI Infrastructure?

Core Scientific is undergoing a significant business transformation, shifting from a Bitcoin mining operation to a provider of high-density colocation services. The company reported total leased customer power capacity of approximately 1.1 gigawatts as of mid-July, representing more than $24 billion in potential contracted revenue. It was billing for 437 MW of capacity, translating to roughly $635 million in average annualized colocation GAAP revenue.

In the second quarter of 2026, Core Scientific posted total revenue of $164.2 million, up from $78.6 million in the prior-year quarter. Colocation revenue surged to $136.7 million, accounting for 83% of total revenue, while self-mining revenue fell 66% to $21.5 million. The company incurred a $41.9 million loss to terminate a contract with Block’s Proto division, accelerating its retreat from Bitcoin mining.

Capital expenditures totaled $797.5 million in Q2, reflecting substantial investments in data center infrastructure and land development rights. The company is repurposing remaining mining facilities to support colocation services as circumstances allow. This strategic pivot is validated by the AMD partnership, which includes 15-year agreements for approximately 530 MW across five sites .

What Are the Financial and Market Implications?

Core Scientific’s financial results highlight a transition to a more profitable business model, although reported net losses were impacted by non-cash items. The company reported a net loss of $1.16 billion in Q2, primarily driven by a $1.05 billion change in fair value of warrants reflecting stock price appreciation . Adjusted EBITDA rose to $41.1 million from $28.5 million in the prior-year quarter .

The high-density colocation business generated $80.0 million in gross profit, representing a 59% gross margin . Conversely, the self-mining segment posted a gross loss of $12.2 million, as the company continues winding down operations . Liquidity stood at $1,819.4 million at the end of the quarter .

Freedom Capital Markets upgraded Core Scientific to Buy from Hold, setting a $33 price target . The analyst noted the company is ahead of schedule in delivering contracted power for a 590 MW deal with CoreWeave, expected to generate over $10 billion in revenue . The AMD partnership brings total contracted revenue to $24 billion, reinforcing the company's position in the AI infrastructure market .

How Does the Board Expansion Support Growth?

Core Scientific appointed Mark W. Adams, former CEO of Penguin Solutions, to its Board of Directors to guide its AI infrastructure expansion . Adams brings over three decades of technology leadership experience, including expertise in AI infrastructure, semiconductors, and data storage . His appointment underscores the company's focus on scaling its high-density data center platform .

The board now consists of seven members, with Adams providing critical insights into hyperscale customer requirements and advanced memory markets . Core Scientific operates 11 facilities across seven states, with most revenue now derived from colocation services . The company aims to deliver durable shareholder value through strategic partnerships and operational execution .

The AMD partnership structure mirrors industry trends, tying chipmaker upside to landlord fortunes through equity warrants . AMD provides credit support for neocloud operators leasing capacity, backing the ecosystem with financial security . This arrangement positions Core Scientific to support AMD’s technology roadmap and grow their relationship over time .