CoreWeave Expands Deal with Core Scientific, Adds $1.225B to Revenue with Extra Infrastructure
Summary:
CoreWeave, a cloud computing provider, has expanded its existing agreement with Bitcoin miner Core Scientific, adding $1.225 billion in revenue and an extra 70 MW in infrastructure for its NVIDIA GPUs. This addition supplements the previously agreed 200 MW, bringing the total project value to $3.5 billion over 12 years. Core Scientific's CEO, Adam Sullivan, has emphasised their strategy for continual transformations and expansions in their hosting business. The company uses artificial intelligence to create additional revenue, serving gaming, AI, and graphics rendering sectors.
In a significant enhancement to their existing pact, CoreWeave, a cloud computing service provider, has broadened its collaboration with Bitcoin miner Core Scientific by triggering an option to procure supplementary infrastructure for its NVIDIA graphics processing units (GPUs). This comes over and above the capacity initially agreed upon in June. The move brings an additional $1.225 billion revenue to Core Scientific, on top of the expected income as per earlier contracts. As part of the deal, Core Scientific will refit its Austin, Texas facilities to start supplying an infrastructure of 70 MW for CoreWeave from the latter half of 2025. Core Scientific has managed to stay one month ahead of its timeline for setting up to accommodate CoreWeave's capacity. The funds for the necessary capital investments will be raised by CoreWeave. Furthermore, a new 70 MW infrastructure will be built, in addition to the 200 MW projected in June. This arrangement was valued at $3.5 billion spread across 12 years.
Core Scientific CEO, Adam Sullivan stated, "Data centres built two decades ago lack the capability to meet the demands of future computing. Core Scientific is strategically positioned to tailor-make our infrastructure for future requirements and establish specific application data centres." He also indicated the company's intention to keep growing and diversify its hosting business along with multiplying its earning capabilities. Enhancing its cryptocurrency mining capacity simultaneously is also on the company's agenda.
Core Scientific isn't the only company leveraging artificial intelligence for augmenting revenue in the wake of the recent Bitcoin halving. On June 25, Canadian miner Hive Digital Technologies disclosed its Q4 results for the financial year ended March 31, signaling an 8% revenue increase year-on-year, reaching a total of $114.5 million. Hive stated in their report commentary, "The company has been actively endeavouring to amplify its facilities to provide HPC services to businesses in the gaming, AI and graphics rendering sectors." Hive aligns itself as an integral contributor to the worldwide rise in data center infrastructure. They currently hold facilities across Canada, Iceland and Sweden.
Published At
6/25/2024 9:54:14 PM
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