Core Scientific to Host CoreWeave's AI and HPC Workloads in $100M+ Deal

Core Scientific, a leading bitcoin mining and digital infrastructure provider, has announced a multi-year contract to supply up to 16 MW of data center infrastructure to CoreWeave, a specialized GPU cloud provider. The potential revenue associated with this long-term hosting contract is estimated to exceed $100 million.

Under the agreement, Core Scientific will deliver the capacity at its new data center in Austin, Texas, which was formerly occupied by Hewlett Packard. This facility will be used to expand Core Scientific's hosting business to include high-performance computing (HPC) alongside its existing bitcoin mining operations.

CoreWeave CEO Michael Intrator praised the strong business relationship between the two companies, citing Core Scientific's responsiveness, high uptime data centers, professionalism, and trust as key factors in the collaboration. Both companies share a core belief in accelerating innovation, which this partnership aims to achieve in rapidly growing applications within AI and HPC.

Core Scientific CEO Adam Sullivan emphasized the company's mission to accelerate digital innovation by scaling high-value compute rapidly, efficiently, and responsibly. The new Austin data center will support CoreWeave's near-term requirements while also expanding and diversifying Core Scientific's hosting customer portfolio across bitcoin mining and specialized GPU cloud compute.

The two companies have a history of collaboration, with Core Scientific hosting CoreWeave's GPU processing hardware in its data centers from 2019 through 2022. Core Scientific operates more than 300 MW of energized infrastructure near major metropolitan areas, with access to high-bandwidth telecommunications infrastructure, both of which are necessary for supporting GPU cloud compute workloads.

Sullivan highlighted Core Scientific's ability to flex its asset base to maximize revenue and earnings, thanks to its diversified business model and leading scale. The company can continue operating as a low-cost bitcoin miner while expanding its hosting customer base and diversifying its earnings streams.

As of January 31, 2024, Core Scientific operated seven data centers across five U.S. states, with a total operating capacity of 724 MW. The company's growth plan includes a 372 MW expansion of its bitcoin mining infrastructure at its two Texas data centers, equivalent to more than 20 exahash of mining capacity. Core Scientific has consistently delivered higher hash rate utilization compared to its North American peer group and bitcoin miners at scale.

This partnership between Core Scientific and CoreWeave showcases the growing demand for HPC and AI infrastructure, as well as the potential for diversification within the digital infrastructure industry. As more companies seek to leverage the power of GPU computing and AI, collaborations like this one are likely to become increasingly common, driving innovation and growth in the sector.