As a seasoned crypto investor with a knack for spotting promising opportunities, I find the expanded partnership between Bitcoin miner Core Scientific and AI computing firm CoreWeave intriguing. The potential $8.7 billion revenue generation over the next 12 years is certainly a compelling proposition.
Bitcoin mining company Core Scientific has disclosed plans to broaden its data center agreement with AI computing service provider CoreWeave.
As per a declaration made on October 22nd, the expanded deal provides an additional 120 megawatts (MW) of power to CoreWeave’s advanced computing operations, raising the total to 500 MW distributed across six Core Scientific locations.
The updated collaboration is projected to bring in approximately $8.7 billion in income for Core Scientific within the subsequent 12 years.
At the moment, shares of Core Scientific (CORZ) have increased by 5.1%, currently being traded at $13.48 on the NASDAQ market.
CoreWeave will finance all necessary investments for enhancing Core Scientific’s data centers, amounting to an estimated $180 million for infrastructure improvements. This investment will be offset against the hosting fees. Moreover, the extended agreement includes options for two additional five-year renewals.
Essentially, CoreWeave is a niche cloud service provider that primarily caters to AI, machine learning, and computationally demanding applications. This collaboration will enable them to broaden their computing infrastructure.
In terms of Core Scientific, the revised agreement expands their artificial intelligence offerings and adds variety to their income sources, all within a few months following their exit from bankruptcy earlier this year. This move comes after they faced significant challenges due to Bitcoin‘s (BTC) price volatility in 2022.
The company intends to allocate approximately 700 megawatts towards High Performance Computing (HPC) hosting, with the remaining 500 megawatts dedicated to ongoing Bitcoin mining activities. This totals up to 1.2 gigawatts of power in all.
According to Adam Sullivan, CEO of Core Scientific, there’s a high need for the necessary infrastructure to handle the computing tasks of future generations, he added.
“We are now working to expand power allocations at some of our existing data centers to increase our capacity for HPC hosting while also continuing to evaluate new sites in our pipeline to expand our business opportunity.”
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2024-10-22 18:46