Initial contracts between Core Scientific and AMD for 530 MW could generate over $14 billion in revenue over 15 years, with the chip manufacturer effectively acting as a credit guarantor for part of the bitcoin miner’s infrastructure. These estimates were provided by Bernstein analysts, according to The Block.
On July 28, the companies announced a partnership with the potential to allocate up to 2.5 GW of power in data centers for AI.
Lower Risks, Higher Margins
Bernstein broke down the contracted 530 MW into 377 MW of direct triple-net leases for AMD and 152 MW for an unnamed cloud provider with credit support from the chip manufacturer. Analysts estimate that this structure reduces financing costs and counterparty risk compared to models where the tenant relies on external credit support.
AMD also received warrants to purchase 30 million shares of Core Scientific at $23.47 per share. The vesting is tied to the partners achieving the target of 2.5 GW, Bernstein noted.
The average annual revenue under the agreement is expected to be approximately $0.9 billion, or about $1.8 million per megawatt. This is 5–25% below the range of $1.9–2.4 million per megawatt in recent miner deals for AI equipment hosting. Meanwhile, the 377 MW of direct leases under the triple-net model are structured with a margin for AMD close to 100%. The mixed EBITDA for the deal is estimated by analysts at around 96%.
Core Scientific anticipates capital expenditures in the deal with AMD to be $11–12 million per megawatt, with a total of about $6 billion. Approximately $1 billion has already been spent, and the company plans to raise the remaining amount through project bonds.
Trend Confirmation
Bernstein experts believe that the partnership between Core Scientific and AMD marks a new phase in the transformation of former bitcoin miners into infrastructure operators for artificial intelligence. Unlike earlier contracts, where tenants were effectively insured by tech companies like Google, AI chip manufacturers themselves are now ready to become anchor tenants and support long-term projects directly.
Recent examples of similar deals include:
- Hut 8 announced the allocation of 704 MW to a tenant identified by FT as Nvidia;
- AMD reserved 200 MW with Riot Platforms.
Previously, Core Scientific paid Block $41.9 million to terminate a contract for the supply of mining chips as part of its accelerated diversification into AI.
