Bitcoin miner Core Scientific signs 12-year deal to deliver 200MW for machine learning

Crypto mining company Core Scientific has signed a 12-year deal with cloud provider CoreWeave to provide resources for AI training.

Bitcoin miners are now diversifying their portfolios by diving into areas related to artificial intelligence (AI); Core Scientific, a crypto mining giant that recently emerged from bankruptcy, is now intensifying its focus on machine learning.

In a June 3 press release, the Texas-based company said it signed a series of 12-year contracts with CoreWeave, a former crypto mining company that now specializes in cloud services for artificial intelligence.

Under the agreement, Core Scientific will provide approximately 200 megawatts of infrastructure to support NVIDIA GPU operations for CoreWeave’s AI training. Infrastructure changes are planned to begin in the second half of 2024 and become fully operational in the first half of 2025. The deal is expected to generate over $3.5 billion in revenue for Core Scientific projects.

“Our new agreements with CoreWeave position us to transform our hosting business and earnings power by seizing exciting growth opportunities in AI computing, one of today’s most dynamic technology segments, while maintaining our strong bitcoin mining franchise.”

Core Scientific CEO Adam Sullivan

The firm announced that the approximately $300 million capital investment in its infrastructure will be transferred to hosting payments, capped at 50% of monthly fees until fully repaid. Additionally, the deals provide options for further expansion, potentially making Core Scientific “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 by raising over $50 million in equity funding from investors. However, the volatile nature of the crypto market has led to financial difficulties, pushing the firm to the brink of bankruptcy in late 2022 due to a series of bankruptcies including FTX, Celsius Network, and Three Arrows Capital. In early 2024, the company emerged from bankruptcy.