AMD, Core Scientific Sign $14B Deal for Up to 2.5GW of AI Power

AMD and Core Scientific announced a 15-year infrastructure partnership on July 28, giving the chipmaker access to more than 500 megawatts of U.S. data center capacity starting in 2027, with room to expand to 2.5 gigawatts, according to the companies’ joint announcement.

What’s in the deal

The initial phase covers 529 megawatts split between two uses: 377 megawatts at Core Scientific sites in Pecos, Texas; Muskogee, Oklahoma; and Hunt County, Texas will run AMD’s own Instinct GPUs and EPYC CPUs, while another 152 megawatts at facilities in Auburn, Alabama, and Dalton, Georgia, will serve Core Scientific’s other cloud customers. Each lease runs 15 years with three five-year renewal options, and AMD holds rights to reserve up to 1,925 additional megawatts through December 2028 — the mechanism that gives the deal its 2.5-gigawatt ceiling.

As part of the agreement, AMD received a warrant for up to 30 million Core Scientific shares at $23.47 apiece, vesting at a rate of 12,222 shares per megawatt of capacity delivered; roughly 6.5 million shares vested immediately. Reporting on the deal has put its total value at more than $14 billion over its life, though neither company published a single headline figure in the release itself.

Part of a broader shift

The deal is the latest sign that Core Scientific, once known mainly for bitcoin mining, has repositioned itself as a neocloud provider — a company that builds and leases GPU-ready data centers to AI labs and chipmakers rather than running its own compute. The company already hosts roughly 590 megawatts under a separate contract with CoreWeave. For AMD, the agreement locks in guaranteed physical capacity as it competes with Nvidia for a larger share of AI infrastructure spending, following AMD’s earlier commitment to deploy 2 gigawatts of chips for Anthropic.

“Core Scientific’s extensive portfolio of AI-ready data centers expands access to the infrastructure our customers need to deploy AMD AI solutions at scale,” AMD chief strategy officer Mathew Hein said in the companies’ joint statement. Core Scientific CEO Adam Sullivan said the deal reflects the company’s “proven execution capabilities” in delivering high-density infrastructure at scale.