TechFlow news: Core Scientific, one of the largest Bitcoin mining companies in the United States, is making a bet on artificial intelligence to address challenges arising from the recent Bitcoin halving. The company has entered into a $3.5 billion deal with AI cloud provider CoreWeave to deliver an additional 200 megawatts of infrastructure for hosting high-performance computing operations.
The agreement is expected to generate over $3.5 billion in total cumulative revenue for Core Scientific during the initial 12-year contract term. In addition, Core Scientific has leased 18% of its total infrastructure capacity to CoreWeave. CoreWeave recently raised $7.5 billion in debt financing from Blackstone, Magnetar, and Coatue, achieving a valuation of $19 billion. These moves by Core Scientific aim to secure additional revenue streams to sustain operations amid pressures brought by the fourth Bitcoin halving.
