tiprankstipranks

Core Scientific signs 12-year contracts with CoreWeave

Core Scientific announced the signing of a series of 12-year contracts with CoreWeave, the AI Hyperscaler. Under the terms of the agreements, Core Scientific will deliver approximately 200 megawatts, or MW, of infrastructure to host CoreWeave’s high-performance compute, or HPC, operations. Core Scientific will modify multiple existing, owned sites to host CoreWeave’s Nvidia GPUs. The site modifications are expected to commence early in the second half of 2024 and achieve operational status in the first half of 2025. Per the agreements, all capital investments required to modify Core Scientific’s existing infrastructure into application-specific data centers customized for dense HPC will be funded by CoreWeave. An estimated $300M of the capital investments associated with Core Scientific-owned infrastructure will be credited against hosting payments at no more than 50% of monthly fees until fully repaid. The agreements with CoreWeave provide opportunities for two renewal terms of five years each. The agreements also provide optionality for further expansion with meaningful additional megawatts at other Core Scientific sites, potentially ranking Core Scientific as one of the largest data center operators in the United States. Once the approximately 200 MW of HPC infrastructure is operational, the project is estimated to generate total cumulative revenue for Core Scientific of over $3.5B during the initial 12-year terms of the contracts. Estimated average annual revenue from the contracts is expected to be approximately $290M. From revenue to gross margin, this is expected to enhance earnings power and drive shareholder value. In connection with this expansion of Core Scientific’s HPC hosting strategy, Core Scientific intends to redeploy certain of its bitcoin mining capacity from designated HPC sites to other of its dedicated bitcoin mining sites to support business continuity and growth.

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

Disclaimer & DisclosureReport an Issue