Core Scientific is making bold moves into the AI and high-performance computing sectors, announcing a $1.2 billion contract and partnership with CoreWeave despite significant financial losses.
Core Scientific's Massive Plans
Core Scientific announced its ambition to increase capacity in Denton, Texas, to become a leading provider of AI-driven data center solutions. The company states that this will be 'one of the largest GPU supercomputers in North America,' designed to support advanced AI applications.
Bitcoin Miners and AI Interest
Core Scientific's move highlights the trend among Bitcoin mining companies like Hive Digital and Hut 8, which are adapting operations for AI and high-performance computing as AI demand grows.
Market Reaction and Future Outlook
The announcement immediately impacted Core Scientific's stock price, which rose 12.29% in after-hours trading, from $10 to $11.25.
As the application of AI continues to expand, Core Scientific seeks to leverage new opportunities in this field, expecting significant future revenue despite current financial losses.
