Cryptocurrency mining company Core Scientific has signed a 12-year deal with cloud provider CoreWeave to provide resources for training its artificial intelligence.
Bitcoin miners are currently diversifying their portfolios by branching out into artificial intelligence (AI)-related fields, with Core Scientific, the crypto mining giant that recently emerged from bankruptcy, now stepping up its focus on machine learning.
The Texas-based company announced in a June 3 press release that it has signed a series of 12-year agreements with CoreWeave, a former cryptocurrency mining company that now specializes in cloud services for AI.
According to the agreement, Core Scientific will provide approximately 200 megawatts of infrastructure to support CoreWeave's operation of NVIDIA GPUs for AI training. The infrastructure changes are expected to begin in the second half of 2024 and be fully operational in the first half of 2025. Core Scientific expects the deal to generate more than $3.5 billion in revenue.
“Our new agreement with CoreWeave will enable us to capture the exciting growth opportunities in AI computing, one of the most dynamic technology sectors today, and transform our hosting business and profitability while maintaining our strong bitcoin mining franchise.”
Adam Sullivan, CEO of Core Scientific
The company revealed that its approximately $300 million capital investment in infrastructure will be deducted from hosting fees up to 50% of monthly rates until fully repaid. Additionally, the deal provides options for further expansion, potentially positioning Core Scientific as “one of the largest data center operators in the United States.”
Founded in 2017 by Mike Levitt and Darin Feinstein, Core Scientific quickly rose to prominence in the crypto mining industry, raising over $50 million in equity funding from investors. However, the volatile nature of the crypto market led to financial difficulties, and a string of bankruptcies, including FTX, Celsius Network, and Three Arrows Capital, brought the company to the brink of bankruptcy in late 2022. The company emerged from bankruptcy proceedings in early 2024.
