- Core Scientific partners with CoreWeave to expand its AI infrastructure, leveraging its expertise in customized data centers.
- Core Scientific has been involved in AI since 2019, integrating AI clusters while maintaining its Bitcoin mining operations.
One of the biggest Bitcoin mining firms, Core Scientific, has contracted CoreWeave to increase its artificial intelligence (AI) capacity. Valued at $8.6 billion over 12 years, the alliance will see 500 megawatts of infrastructure developed.
Following the fourth Bitcoin halving in April, several Bitcoin miners—including companies like Hut 8 and HIVE—are moving resources to artificial intelligence, therefore profoundly affecting profitability.
This morning, $CORZ announced exercise of final contract option by @CoreWeave for delivery of ~120 MW of additional digital infrastructure to host high-performance computing operations.
-Expands total contracted #HPC infrastructure by CoreWeave to ~500 MW of critical IT load at… pic.twitter.com/zUmmfGFhnd
— Core Scientific (@Core_Scientific) October 22, 2024
Core Scientific’s Early AI Involvement and Strengthened Partnership with CoreWeave
Long before many others in the sector, Core Scientific first engaged in artificial intelligence in 2019. “Core Scientific began as a data center operator mostly offering colocation services rather than for proprietary mining,” stated Wolfie Zhao, head of research at BlocksBridge Consulting.
This knowledge gave the business a head start so it could keep mining Bitcoin while including artificial intelligence clusters into its processes.
Working with CoreWeave helps Core Scientific’s presence in the artificial intelligence market to be even more reinforced. “It wasn’t something that just came out of nowhere,” said Russell Cann, chief development officer of Core Scientific. “Our partnership with CoreWeave has been enduring.”
Together, as they grew their GPU cloud business, we have worked on many engineering elements. Cann underlined that the company distinguishes itself from rivals by being able to adapt infrastructure for particular uses.
AI infrastructure’s operational and financial requirements are far higher than those of Bitcoin mining. “The investment requirements for purpose-built infrastructure and GPUs for AI workloads are so high that capital allocators cannot afford to take operational risks,” said Compass Mining chief revenue officer CJ Burnett.
While Bitcoin mining sites can run in far-off areas with sporadic electricity, artificial intelligence clusters demand constant uptime and call for backup systems and cooling techniques that increase prices.
On the other hand, CNF previously reported that BitFuFu has acquired an 80-MW Bitcoin mining facility in Ethiopia, with the goal of reducing operational costs and increasing capacity. This new facility will push BitFuFu’s hosting capacity beyond 600 MW, further strengthening its global mining infrastructure.
