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Core Scientific signs a $3.5 billion deal with CoreWeave to expand into AI and HPC

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Core Scientific

Core Scientific, a prominent cryptocurrency miner, has entered into a 12-year contract for $3.5 billion with CoreWeave, a company supported by Nvidia.

This arrangement signifies a deliberate change in focus from mining Bitcoin to engaging in high-performance computing (HPC) and artificial intelligence (AI) activities. The agreement will overhaul Core Scientific’s facilities, making them compatible with cutting-edge AI applications, and allocate $300 million towards enhancing the infrastructure.

Implementing this action is crucial for achieving equilibrium between Bitcoin mining and AI hosting, hence enhancing the potential for development.

CoreWeave will assume responsibility for all initial capital expenditures, including the $300 million required for upgrades, and recoup these expenses via hosting fees, therefore reducing financial risk for Core Scientific. The agreement is anticipated to enhance profits, with estimated yearly sales of around $290 million.

The timing is critical since Core Scientific has just recovered from bankruptcy resulting from the 2022 Bitcoin market meltdown and has shifted its focus towards more sustainable business methods. The arrangement also incorporates provisions for future growth, as CoreWeave plans to augment its capacity at Core Scientific’s facilities and is now engaged in discussions for new contracts to bolster its capabilities.

The increasing need for AI infrastructure, fueled by technologies like as OpenAI’s ChatGPT, is the driving force for the shift towards AI and HPC hosting.

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Emma Davis is a highly skilled and experienced crypto writer with a passion for all things blockchain and cryptocurrency. With years of experience writing about the latest trends, news, and innovations in the crypto world, Emma has established herself as one of the best crypto journalists.