Teaming Up with Core Scientific! AMD Secures Up to 2.5GW of AI Data Center Computing Resources, Yet Stock Drops 8.2%

Advanced Micro Devices (AMD-US) announced on Tuesday (28th) a cooperation agreement with Core Scientific, securing up to 2.5 gigawatts (GW) of data center capacity to meet expanding infrastructure needs amid rising AI computing demand.

Mathew Hein, AMD's Head of Corporate Development Strategy, said: "Core Scientific's extensive AI data center resources will further expand customer access to AI infrastructure, helping them deploy AMD-based AI solutions at scale."

As cloud service providers and enterprises continue to increase investments in AI infrastructure, demand for power, land, and data center resources continues to rise.

Under the agreement, AMD will receive warrants to purchase Core Scientific's common stock at market price upon meeting specific commercial conditions, though the parties did not disclose specific financial terms.

This partnership will enable AMD to access over 500 megawatts (MW) of AI data center capacity from Core Scientific starting next year, with the potential to scale up to 2.5GW. Customers can utilize these facilities to deploy AI systems.

In recent years, Core Scientific has gradually shifted from cryptocurrency operations to hosting AI and high-performance computing (HPC) workloads.

Under the agreement, Core Scientific will also collaborate with AMD on physical data center infrastructure design and deploy AMD's chips and software solutions.

Adam Sullivan, CEO of Core Scientific, stated that this strategic partnership will deeply align with AMD's long-term technology roadmap. Leveraging the company's mature project delivery capabilities and experience in scaling high-density computing infrastructure, Core Scientific can continuously support the iteration and commercial deployment of AMD's next-generation products. The scale and scope of collaboration are expected to expand further as the industry evolves.

This partnership marks a significant step in AMD's strategy, further solidifying its position in the high-end AI computing supply chain and data center infrastructure, effectively addressing deployment bottlenecks and enhancing its competitiveness against industry leaders.

Despite announcing the 2.5GW AI data center collaboration with Core Scientific on Tuesday, AMD's stock closed down 8.15% to $454.62 per share, weighed down by weakness across the broader semiconductor sector.