AMD's stock dropped nearly 7 percent on Monday even after the company unveiled a substantial AI infrastructure agreement with Core Scientific. The partnership grants AMD access to over 500 megawatts of U.S. data center capacity beginning in 2027, with the option to scale up to 2.5 gigawatts.
Core Scientific and AMD announced the collaboration to bolster deployments of AMD's AI solutions, including its Instinct GPUs, EPYC CPUs, and ROCm software. The deal aims to address the growing demand for AI computing power, which has become a significant bottleneck for chip manufacturers and enterprise clients alike.
Infrastructure Expansion Amid Industry Shifts
Mathew Hein, AMD’s senior VP and chief strategy officer, emphasized the rapid pace of AI adoption and the necessity of strong infrastructure partners to support this growth. Meanwhile, Core Scientific’s CEO Adam Sullivan highlighted that their high-density data center capabilities align well with AMD’s roadmap and expect the partnership to expand over time as AI demand surges.
Core Scientific has been gradually shifting focus from Bitcoin mining to AI-ready data center services, repurposing facilities to support AI hosting and computing needs. The company has sold a significant portion of its Bitcoin holdings to facilitate this pivot, although it continues to earn revenue from crypto mining and hosting. The partnership with AMD fits into this broader strategy to capture AI market opportunities.
Despite the announcement, Core Scientific’s shares fell more than 3 percent at market open amid a wider tech selloff and have declined over 12 percent in the past week. AMD's stock performance similarly reflects caution from investors, even as the chipmaker secures vital AI infrastructure capacity for the coming years.
This content is for informational purposes only and does not constitute financial advice.
