Core Scientific Partners with CoreWeave for AI Growth

In a significant turnaround, U.S. bitcoin miner Core Scientific, which faced bankruptcy and lender disputes earlier this year, has announced a $6.7 billion deal with CoreWeave, an Nvidia-backed startup. This partnership aims to provide approximately 382 megawatts of infrastructure to CoreWeave by mid-2026, with the potential for an additional 118 megawatts at other Core Scientific locations. This move marks a strategic pivot for the company as it seeks to capitalize on the growing demand for AI technology. The shift towards AI infrastructure has become increasingly common among publicly traded bitcoin miners, particularly following the profitability decline in bitcoin mining after the halving event in April. However, transitioning to AI is not merely a matter of repurposing existing mining equipment; it requires significant adjustments to meet the distinct demands of AI data networks. For instance, Bit Digital, another bitcoin miner, has reported that around 27% of its revenue now comes from AI, having secured a three-year agreement to supply Nvidia GPUs at a data center in Iceland, projected to generate $92 million annually. Analysts from Cantor Fitzgerald have noted that the recent sell-off in mining stocks presents a potential buying opportunity, despite Core Scientific's rejection of a recent bid. Currently, Core Scientific holds a market valuation of approximately $1.5 billion, reflecting its ongoing efforts to adapt to the evolving landscape of digital infrastructure. As the trend of bitcoin miners transitioning to AI continues, the industry is poised for further developments in the coming years.