Core Scientific Announces Extension of CoreWeave Option for 118 Megawatts of Infrastructure to Support High-Performance Computing

Rhea-AI Summary

Core Scientific (Nasdaq: CORZ) has announced a 30-day extension of CoreWeave's option to contract 118 megawatts of infrastructure for high-performance computing (HPC). This extension is part of a larger agreement where CoreWeave has already contracted a total of 382 megawatts of infrastructure to support HPC hosting operations across multiple Core Scientific data centers. The extension aims to accommodate design, supply chain, and construction timeline development activities.

This development highlights Core Scientific's expanding role in providing digital infrastructure for both bitcoin mining and HPC, positioning the company as a key player in the growing demand for advanced computing capabilities.

Positive

• CoreWeave has contracted a total of 382 megawatts of infrastructure for HPC hosting
• Potential for additional 118 megawatts of infrastructure to be contracted
• Expansion into high-performance computing sector beyond bitcoin mining

Negative

• None.

Market Research Analyst

The extension of CoreWeave's option for 118 megawatts of infrastructure is a neutral development for Core Scientific. While it signals ongoing interest from CoreWeave, the delay suggests potential complexities in finalizing the deal. The total contracted capacity of 382 megawatts for HPC hosting is significant, indicating Core Scientific's strong position in the high-performance computing market.

However, investors should note that this extension doesn't guarantee the completion of the deal. The focus on "design, supply chain and construction timeline development activities" hints at possible challenges in implementation. This situation underscores the capital-intensive nature of the data center industry and the importance of securing long-term contracts to justify infrastructure investments.

Tech Expert

The potential addition of 118 megawatts for HPC infrastructure highlights the growing demand for high-performance computing resources. This trend is driven by advancements in AI, machine learning and data analytics. Core Scientific's ability to attract large-scale HPC clients like CoreWeave demonstrates its competitive edge in providing scalable, efficient data center solutions.

The extension for design and timeline development suggests a complex, customized setup, likely involving advanced cooling systems and high-density rack configurations. This level of customization could position Core Scientific as a preferred partner for demanding HPC workloads, potentially opening doors to more lucrative contracts in the future. However, the delay also indicates the technical challenges involved in meeting the specific requirements of HPC clients.

AUSTIN, Texas--(BUSINESS WIRE)-- Core Scientific, Inc. (Nasdaq: CORZ) ("Core Scientific" or “the Company”), a leader in digital infrastructure for bitcoin mining and high-performance computing, today announced a 30-day extension of CoreWeave’s remaining option to contract 118 megawatts of infrastructure for high-performance computing (“HPC”).

Both Core Scientific and CoreWeave agreed to the 30-day option extension to accommodate design, supply chain and construction timeline development activities. CoreWeave has contracted a total of 382 megawatts of infrastructure to support HPC hosting operations at multiple Core Scientific data centers.

ABOUT CORE SCIENTIFIC

Core Scientific is a leader in digital infrastructure for bitcoin mining and high-performance computing. We operate dedicated, purpose-built facilities for digital asset mining and are a premier provider of digital infrastructure, software solutions and services to our third-party customers. We employ our own large fleet of computers (“miners”) to earn bitcoin for our own account and provide hosting services for large bitcoin mining and high-performance computing customers at our eight operational data centers in Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1) and Texas (3). We derive the majority of our revenue from earning bitcoin for our own account (“self-mining”). To learn more, visit www.corescientific.com.

FORWARD LOOKING STATEMENTS AND EXPLANATORY NOTES

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its businesses, implement its business strategy, source necessary electrical energy, the advantages and expected growth of the Company and the Company’s ability to source and retain talent. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “estimate,” “plan,” “project,” “forecast,” “goal,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including: our ability to earn digital assets profitably and to attract customers for our current and future expected hosting infrastructure; our ability to maintain our competitive position in our businesses; our ability to raise additional capital to continue our expansion efforts or other operations; our need for significant electric power and the limited availability of power resources; the potential failure in our critical systems, facilities or services we provide; the physical risks and regulatory changes relating to climate change; potential significant changes to the method of validating blockchain transactions; our vulnerability to physical security breaches, which could disrupt our operations; a potential slowdown in market and economic conditions, particularly those impacting artificial intelligence, high value computing, the blockchain industry and the blockchain hosting market; the identification of material weaknesses in our internal control over financial reporting; price volatility of digital assets and bitcoin in particular; the “halving” and other reduction of rewards available on the Bitcoin network, affecting our ability to generate revenue; the potential that insufficient awards from digital asset mining could disincentivize transaction processors from expending processing power on a particular network, which could negatively impact the utility of the network and further reduce the value of its digital assets;; potential changes in the interpretive positions of the SEC or its staff with respect to digital asset mining firms; the increasing likelihood that U.S. federal and state legislatures and regulatory agencies will enact laws and regulations to regulate digital assets and digital asset intermediaries; increasing scrutiny and changing expectations with respect to our ESG policies; the effectiveness of our compliance and risk management methods; the adequacy of our sources of recovery if the digital assets held by us are lost, stolen or destroyed due to third-party digital asset services; and our level of indebtedness and our current liquidity constraints affecting our financial condition and ability to service our indebtedness. Any such forward-looking statements represent management’s estimates and beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

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Source: Core Scientific, Inc.

FAQ

What is the latest update on Core Scientific's agreement with CoreWeave for CORZ stock?

Core Scientific has announced a 30-day extension of CoreWeave's option to contract an additional 118 megawatts of infrastructure for high-performance computing.

How much total infrastructure has CoreWeave contracted with Core Scientific (CORZ)?

CoreWeave has contracted a total of 382 megawatts of infrastructure to support HPC hosting operations at multiple Core Scientific data centers.

Why did Core Scientific (CORZ) extend CoreWeave's option for additional infrastructure?

The 30-day option extension was agreed upon to accommodate design, supply chain, and construction timeline development activities related to the potential 118 megawatt infrastructure contract.

What sectors does Core Scientific (CORZ) provide infrastructure for?

Core Scientific provides digital infrastructure for both bitcoin mining and high-performance computing (HPC).