Drops 6% as Core Scientific Partnership Secures Up to 2.5 GW for AI Expansion

TLDR

• AMD stock fell 6.7% after announcing the Core Scientific AI partnership.

• Core Scientific will provide up to 2.5 GW of AI data center capacity.

• Initial AI infrastructure deployments are scheduled to begin during 2027.

• AMD will receive warrants to purchase Core Scientific common stock.

• The partnership strengthens AMD’s long-term AI infrastructure expansion plans.

Advanced Micro Devices (AMD) shares fell 6.70% to $461.80 after the company announced a long-term AI infrastructure partnership with Core Scientific. The agreement secures access to as much as 2.5 gigawatts of data center capacity for future AI deployments. Meanwhile, the collaboration expands AMD’s computing ecosystem while supporting large-scale AI infrastructure beginning in 2027.

Advanced Micro Devices, Inc., AMD

AMD secures long term AI infrastructure capacity

Core Scientific and AMD signed a strategic agreement covering up to 2.5 gigawatts of AI-ready data center capacity. The companies plan to begin making more than 500 megawatts available during 2027. Furthermore, the agreement allows future expansion as demand for AI computing continues to increase.

The partnership combines AMD’s computing platforms with Core Scientific’s power and data center infrastructure. Planned deployments will use AMD Instinct GPUs, EPYC processors, and the ROCm software platform. Consequently, the agreement supports customers deploying large AI computing workloads across the United States.

The companies will also cooperate on designing physical infrastructure for high-density computing environments. This approach aligns computing hardware with facilities built for demanding AI applications. As a result, AMD strengthens its ability to support enterprise and cloud-based AI deployments over the coming years.

Core Scientific expands its AI infrastructure strategy

Core Scientific continues shifting part of its business beyond cryptocurrency mining into AI infrastructure services. The AMD agreement supports that strategy by committing substantial future data center capacity. In addition, the arrangement positions Core Scientific as a long-term infrastructure provider for advanced computing projects.

Unlike a conventional hardware supply agreement, the partnership combines computing systems with dedicated power and facility resources. This structure allows customers to deploy AI infrastructure without independently securing large-scale data center capacity. Therefore, the companies address one of the largest challenges facing expanding AI workloads.

AMD will also receive market-priced warrants to purchase Core Scientific common stock under specified commercial conditions. However, the companies did not disclose the agreement’s financial value or the size of any potential ownership stake. They also withheld the identities of customers expected to use the future infrastructure.

Agreement supports growing demand for AI computing

Demand for AI computing infrastructure continues rising as enterprises expand machine learning and large-scale computing projects. Power availability, land, and specialized data centers have become critical requirements for deploying modern AI systems. Consequently, technology companies increasingly seek long-term infrastructure agreements instead of relying only on hardware sales.

The agreement gives AMD additional infrastructure capacity supporting customers building AI systems at greater scale. More than 500 megawatts will become available during the initial deployment phase beginning in 2027. Afterwards, the partnership provides a path toward expanding capacity to as much as 2.5 gigawatts.

Core Scientific shares also declined after announcing the agreement despite securing a major long-term commercial relationship. Nevertheless, the partnership strengthens the company’s transition toward AI infrastructure while expanding future revenue opportunities. Meanwhile, AMD broadens its AI ecosystem through guaranteed infrastructure access supporting future deployments across multiple customer segments.