Research Reports

Key takeaways

Lease agreements with AMD (377 MW) and Neocloud (152 MW) for 15-year terms with extension options, generating contracted revenue of over $24 billion.

AMD received a warrant to purchase up to 30 million shares at $23.47 per share; 6.5 million shares vested immediately based on leased capacity.

AMD has a right to lease an additional 1,925 MW through December 2028, indicating potential for significant future growth.

Credit Support Agreements with AMD protect AMD's equipment in Neocloud leases and provide cure rights for Neocloud defaults.

The partnerships expand Core Scientific's AI infrastructure footprint across multiple U.S. sites, with initial deliveries expected in 2027.

Full analysis

Core Scientific's entry into lease agreements with AMD and Neocloud marks a significant expansion of its AI infrastructure business. The agreements provide over 529 MW of immediate capacity with AMD's option to lease up to an additional 1,925 MW, representing a potential total of over 2.5 GW. The 15-year contracts (with renewal options) underpin long-term recurring revenue. The issuance of a warrant to AMD for up to 30 million shares at $23.47 ties AMD's upside to Core Scientific's success and aligns incentives. The warrant's vesting based on capacity deployed directly links equity compensation to operational milestones. Credit support agreements further strengthen AMD's commitment and provide protections. Initial deliveries are expected in 2027, with full 530 MW delivered by end of 2028. This partnership positions Core Scientific as a key infrastructure provider for AMD's ecosystem, leveraging its existing data center sites and construction expertise.

CORZZ · Core Scientific, Inc.

Summary

Key takeaways

Full analysis