Core Scientific shares were up 50% at $7.33 in premarket trading after the company signed a series of 12-year contracts with CoreWeave, an artificial intelligence company.
Under the terms of the agreements, Core Scientific will deliver 200 megawatts of infrastructure to host CoreWeave’s high-performance computing operations.
Core Scientific will modify multiple existing, owned sites to host CoreWeave’s Nvidia GPUs. The site modifications are expected to begin early in the second half of 2024 and achieve operational status in the first half of 2025.
The agreements provide CoreWeave with options over the next 60 to 90 days to further expand its hosting footprint with Core Scientific at additional select sites. They also include opportunities for two renewal terms of five years each, as well as options for further expansion with meaningful additional megawatts at other Core Scientific sites.
Once the 200 MW of infrastructure are operational, the project is estimated to generate total cumulative revenue for Core Scientific of over $3.5 billion during the initial 12-year terms of the contracts. The estimated average annual revenue from the contracts is expected to be approximately $290 million.