Core Scientific To Provide CoreWeave Up To 16 MW Of Data Center Infrastructure To Support AI And HPC Workloads In Long Term Hosting Contract With Potential Revenue Of Over $100M
Portfolio Pulse from Benzinga Newsdesk
Core Scientific has entered into a long-term hosting contract with CoreWeave, providing up to 16 MW of data center infrastructure to support AI and HPC workloads, potentially generating over $100M in revenue. This strategic move leverages Core Scientific's expertise in high-value compute, expanding its revenue model to include customers in the rapidly growing HPC sector. The company has leased a data center in Austin, TX, previously occupied by Hewlett Packard, to facilitate this growth. The contract is expected to be accretive to Core Scientific's earnings in 2024.
March 06, 2024 | 9:30 pm
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Core Scientific's new contract with CoreWeave to provide data center infrastructure for AI and HPC workloads could significantly boost its revenue, with potential earnings of over $100M. This strategic expansion into HPC, utilizing a leased data center in Austin, TX, is expected to positively impact Core Scientific's earnings in 2024.
The contract with CoreWeave represents a significant revenue opportunity for Core Scientific, potentially exceeding $100M. This move not only diversifies Core Scientific's revenue streams by tapping into the growing HPC market but also strategically utilizes existing infrastructure, such as the leased Austin, TX data center. Given the expected accretive effect on 2024 earnings, this deal is likely to be viewed positively by investors, driving short-term optimism in Core Scientific's stock.
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