Core Scientific’s $14bn AMD Deal Vindicates Its Rejection of CoreWeave

Core Scientific (CORZ) has signed 15-year lease agreements with AMD and a Neocloud partner for 529 megawatts (MW) of critical IT capacity across five US sites, worth more than $14bn in potential contracted revenue, the Bitcoin miner turned AI infrastructure operator said on 28 Jul.

Shares rose as much as 18% to $24.05 in pre-market trading before paring the move, trading around $21.70 by 12:20UTC.

The deal lands nine months after Core Scientific shareholders voted down CoreWeave’s $9bn all-stock buyout, the second takeover attempt they had rejected, on advice from proxy advisers that the company was worth more independent. AMD also received warrants for up to 30mn Core Scientific shares at $23.47, vesting at a rate tied to megawatts leased; roughly 6.5mn shares vested immediately.

Core Scientific reported second-quarter results the same day: revenue more than doubled to $164.2mn and adjusted EBITDA rose to $41.1mn, but the company posted a net loss of $1.16bn, which it attributed to the rising fair value of its warrant liabilities as its own share price climbed, not to cash costs.

More details to follow.

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