Core Scientific (NASDAQ: CORZ) has secured a strategic partnership with Advanced Micro Devices Inc. (NASDAQ: AMD) that Bernstein Research forecasts could generate approximately $14 billion in revenue over 15 years. The agreement involves deploying up to 530 megawatts of leasable AI infrastructure across five sites under long-term contracts, marking a significant pivot for the former Bitcoin miner into high-density AI hosting. This development coincides with Core Scientific’s Q2 fiscal year 2026 earnings, where the company reported total revenue of $164.2 million, beating analyst estimates of $143.1 million by nearly 15%, despite missing per-share earnings expectations.

The partnership anchors roughly $14 billion in potential base contracted revenue, with Bernstein estimating average annual revenue of nearly $900 million, or approximately $1.8 million per megawatt. While this revenue per megawatt is modestly below recent AI colocation agreements, the direct lease structure is expected to generate nearly 100% margins. The deal highlights a broader industry shift where major chipmakers are using their balance sheets to secure long-term data center leases, enabling former miners with existing power infrastructure to transition into AI hosting businesses.

Sector-Wide Infrastructure Shift

Bernstein analyst Gautam Chhugani noted that the Core Scientific deal reflects a wider trend of chipmakers backing long-term data center leases. Similar agreements have emerged across the sector, including Hut 8 Corp. (NASDAQ: HUT), which announced a 704-MW agreement with a single tenant reportedly identified as Nvidia Corp. (NASDAQ: NVDA). Additionally, AMD has reserved 200 MW with Riot Platforms Inc. (NASDAQ: RIOT). These deals allow companies with established power footprints to monetize their assets through triple-net lease structures, reducing operational risk for the hosts while securing critical infrastructure for chipmakers.

Financial Performance and Capital Requirements

Core Scientific’s Q2 2026 results showed robust top-line growth, with colocation revenue surging to $136.7 million from $10.6 million in the prior-year period. This drove gross profit to $70.0 million and expanded consolidated gross margins to 43%, up from just 6% in Q2 2025. However, the company reported a net loss of $1,155.3 million, widened by fair value changes in warrants. Capital expenditures for the quarter totaled $797.5 million, reflecting accelerated infrastructure investment.

Note: Figures in millions except where noted. Liquidity includes cash and digital assets.

What the Numbers Show

The divergence between strong revenue growth and a widened net loss underscores the impact of non-operational factors on Core Scientific’s bottom line. While colocation metrics demonstrate successful execution in high-density services, the net loss was heavily influenced by fair value changes in warrants. The AMD partnership provides a clear path to stabilizing cash flows, with Bernstein estimating total project costs near $6 billion based on guided capital expenditure of $11 million to $12 million per megawatt. With approximately $1 billion already invested, the remaining construction is expected to be financed through project-level debt, leveraging the high-margin nature of the triple-net lease structure.

Core Scientific, Inc. (NASDAQ: CORZ) has appointed Mark W. Adams to its Board of Directors, effective immediately, expanding the governing body to seven directors. The appointment strengthens the board's oversight capabilities as the digital infrastructure provider scales its high-density colocation (HDC) platform to support artificial intelligence workloads.

Adams brings more than three decades of technology leadership experience across AI infrastructure, semiconductors, storage, digital media, and enterprise hardware. He most recently served as President and Chief Executive Officer of Penguin Solutions, Inc. (formerly SMART Global Holdings, Inc.) from 2020 until 2026. During his tenure, he led the company’s repositioning toward AI infrastructure solutions, including memory solutions and IT services for enterprise and hyperscale customers. Prior to Penguin Solutions, Adams spent ten years at Micron Technology, Inc., holding senior leadership roles, including a four-year stint as President.

Currently, Adams serves on the boards of Seagate Technology Holdings Public Limited Company (since 2024) and Cadence Design Systems, Inc. (since 2015). He holds an MBA from Harvard University and a B.A. from Boston College.

Strategic Rationale

Adam Sullivan, Chief Executive Officer of Core Scientific, cited Adams’ track record of scaling complex global businesses and leading strategic transformations as key factors in the appointment. Sullivan noted that Adams’ deep experience across AI infrastructure, semiconductors, and data storage is highly relevant as Core Scientific expands its high-density data center platform and strengthens its growth foundation.

Adams stated that Core Scientific is operating at the forefront of the AI infrastructure market, developing critical capacity for advanced computing. He expressed excitement about supporting the company’s efforts to expand its platform, deepen customer relationships, and deliver durable shareholder value.

Board Composition

With this addition, Core Scientific’s Board now comprises seven directors. The company continues to repurpose remaining mining facilities to support its high-density colocation services business as circumstances allow, with facilities located across Alabama, Georgia, Kentucky, North Carolina, North Dakota, Oklahoma, and Texas.