AMD signs AI data center deal with Core Scientific

July 28 (Reuters) - AMD ‌on Tuesday ​signed ​a deal with Core Scientific to secure up to 2.5 gigawatts of data center ‌capacity as the chip firm expands infrastructure to ⁠meet growing demand for AI computing.

Shares of Core Scientific jumped ‌6% in premarket trading, ‌while AMD's stock was down 4%, tracking other chipmakers.

Demand for electricity, land and data center facilities ​has surged as cloud providers and enterprises ramp up investments in AI infrastructure.

Under the deal, AMD ⁠will receive market-priced warrants to purchase Core Scientific common stock, subject ​to certain commercial conditions. Financial terms of the deal were not disclosed.

The partnership gives AMD ​access to more than 500 ‌megawatts of Core Scientific's AI-ready data center capacity starting in 2027, which the ⁠chip maker's customers can use to deploy artificial intelligence systems. This capacity can be expanded to 2.5 gigawatts.

Core ⁠Scientific, which has been shifting from crypto toward hosting AI ​and high-performance computing workloads, will also work with AMD on physical infrastructure design and the deployment of AMD's chips and ‌software.

"Core Scientific's extensive portfolio of AI-ready data centers expands access to the infrastructure ‌our customers need to deploy AMD AI solutions at ⁠scale," said Mathew ‌Hein, chief strategy officer ​of corporate development at AMD.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy ‌Leo)

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