Core Scientific (NASDAQ:CORZ) saw its shares spike as much as 17% following the announcement of a new $2 billion high-performance computing (HPC) contract with CoreWeave. The extension of a prior agreement will see Core Scientific host an additional 112 megawatts (MW) of GPUs for CoreWeave, an AI hyperscaler firm. This deal boosts Core Scientific’s expected total revenue from the contract to $6.7 billion, starting in the first half of 2026.
CoreWeave will cover all capital expenditures necessary to upgrade Core Scientific’s existing infrastructure for HPC use. This new deal follows an earlier agreement to provide 200MW of GPU hosting, with subsequent expansions adding 70MW, and now this third extension.
The agreement highlights Core Scientific’s strategic advantage in leveraging its existing infrastructure for HPC and AI needs, which require high-energy data centers. This is a growing market opportunity as demand for advanced data center infrastructure increases.
Core Scientific has also secured options for further contract extensions to host an additional 118MW for HPC computing, underscoring its role in meeting the energy-intensive demands of modern computing.
The company’s ability to adapt its mining infrastructure to support high-performance and AI data centers is seen as a key factor in its current market performance, given the challenges faced by the crypto mining sector amid a prolonged bear market.
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