AMD Partnership Could Yield $14 Billion Over 15 Years for Core Scientific
Core Scientific's deal with AMD could generate $14 billion in revenue over 15 years, according to analyst Gautam Chhugani of Bernstein. This estimate is based on a contract for 530 megawatts of capacity between Core Scientific and the chipmaker.
The partnership highlights a shift in AI infrastructure financing, as major chipmakers increasingly use their balance sheets to secure long-term leases signed by former Bitcoin miners. These miners can then transition into AI hosting businesses using their existing power infrastructure.
Bernstein estimates that the partnership will generate nearly 100% margins under its triple-net structure. The direct lease to AMD is expected to bring in around $900 million in average annual revenue, with a total project cost of approximately $6 billion. This includes around $1 billion already invested by Core Scientific.
The remaining construction costs are expected to be financed through project-level debt. Bernstein's estimate of $14 billion in revenue over 15 years is based on a rough calculation of $1.8 million per megawatt in annual revenue.