CoreWeave expands Core Scientific computing deal by $1.225B

CoreWeave has expanded its agreement with Bitcoin miner Core Scientific, adding $1.225 billion in value to its agreement to provide infrastructure for CoreWeave’s NVIDIA GPUs.
CoreWeave has expanded its agreement with Bitcoin miner Core Scientific, adding $1.225 billion in value to its agreement to provide infrastructure for CoreWeave’s NVIDIA GPUs.

Cloud computing provider CoreWeave has beefed up its deal with Bitcoin miner Core Scientific by exercising an option to receive additional infrastructure for its NVIDIA graphics processing units (GPUs) on top of capacity agreed to earlier in June. The decision adds another $1.225 billion to the income Core Scientific expected to receive under earlier agreements. 

Under the option, Core Scientific will modify its facilities in Austin, Texas to begin providing 70 MW of infrastructure for CoreWeave in the second half of 2025. Core Scientific is a month ahead of schedule in its preparations to host CoreWeave capacity.

Core Scientific is tapping the potential of AI

CoreWeave will fund the necessary capital investments. Another 70 MW of infrastructure will be created in addition to the 200 MW foreseen in early June. That agreement was worth $3.5 billion over its 12-year term.

Related: Core Scientific declines unsolicited Coreweave buyout bid

Source: Anthony Power

Core Scientific chief executive officer Adam Sullivan said in a statement:

“Many data centers built in the last 20 years are not suitable to support future computing requirements. Core Scientific is well positioned to design for the future and build application-specific data centers (ASDCs).” 

“We intend to continue to transform and expand our hosting business and our earnings power,” he continued. The company will continue to enhance its crypto mining capacity at the same time.

AI give all miners new revenue potential

Core Scientific is not alone in looking to artificial intelligence for additional revenue flow after the latest Bitcoin (BTC) halving. Also on June 25, Canadian miner Hive Digital Technologies released its fourth-quarter results for the financial year ending on March 31. It showed an 8% increase in revenue year-on-year for a total of $114.5 million.

“The Company has continued its efforts to expand its facilities to offer HPC services to companies in the gaming, artificial intelligence and graphics rendering industries,” Hive said in the accompanying commentary. Hive is “firmly part of the global boom in data center infrastructure,” it added.

Hive has facilities in Canada, Iceland and Sweden.

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