AMD Doubles Down on AI Ambitions with $2.5 Billion Data Center Deal

Core Scientific has partnered with AMD to enhance its compute capacity, signing a deal worth over 2.5 gigawatts of data center space in the US. The agreement gives AMD access to more than 500 megawatts of data center capacity starting in 2027, with the option to scale up to the full 2.5 gigawatts over time.

The partnership involves more than just leasing floor space - both companies will work together on infrastructure design and deployment, specifically around AMD's Instinct GPUs, EPYC CPUs, and ROCm software stack.

AMD's SVP Mathew Hein framed the partnership around necessity, citing the importance of 'trusted infrastructure partners' for achieving the kind of scalability that AI demand now requires. The collaboration marks a significant step in Core Scientific's pivot from Bitcoin mining to high-density colocation provider for AI and high-performance computing workloads.

The warrant structure is worth watching closely - by tying AMD's equity upside in Core Scientific to commercial milestones, both companies have created an incentive alignment that goes beyond a standard landlord-tenant relationship. The deal introduces a notable dynamic for Core Scientific shareholders, who will see their ownership percentages decrease if AMD hits those milestones and exercises the warrants.