Core Scientific’s stock soared over 12% in early trading on August 6, following an announcement to expand their billion-dollar deal with CoreWeave.
The enhancement of the hosting agreement aims to utilize additional resources for Nvidia GPUs, demonstrating a strategic shift to accommodate growing demands in artificial intelligence capabilities.
As of this writing, Core Scientific’s shares have climbed 12.1%, reaching $9.22 on Nasdaq. This increase is attributed to the projected $2 billion in revenue from the new 12-year hosting agreement with CoreWeave.
The development is a turnaround from just two months ago when Core Scientific rejected a buyout offer from the same partner, emphasizing their long-term commitment to growth and valuation.
Earlier deals between the two companies include a $3.5 billion agreement from June for 200 MW of infrastructure to support CoreWeave’s HPC operations.
Additionally, a lease for a Tier 3 data center in Austin, Texas, was expected to bring over $100 million in revenue. With the latest agreement, the total contracted HPC infrastructure capacity has reached 382 megawatts, according to Core Scientific CEO Adam Sullivan.
CoreWeave will shoulder the capital investments needed to upgrade the infrastructure, with updates scheduled to start soon and operational status targeted for the first half of 2026.
The agreement also includes options for two five-year renewal terms, providing flexibility for future expansions and strengthening the partnership’s foundation.
The expanded collaboration between Core Scientific and CoreWeave not only boosts immediate stock value and revenue projections but also sets a robust framework for future growth and technological advancements in high-performance computing. This strategic move is anticipated to solidify their position in the competitive data center market through 2026 and beyond.
Also Read: CoreWeave Signs New Hosting Deal with Core Scientific
