Core Scientific announces multi-gigawatt AI capacity expansion and strategic partnership with AMD.

Core Scientific reported strong second-quarter results and announced a transformative infrastructure partnership with Advanced Micro Devices (AMD), sending CORZ stock up as much as 10% in pre-market trading on Tuesday.

Under the agreement, AMD will secure more than 500 megawatts of U.S. data center capacity from Core Scientific beginning in 2027, with the ability to expand to 2.5 gigawatts. The companies will collaborate on physical infrastructure design and deployment of AMD's Instinct GPUs, EPYC CPUs, and ROCm software. AMD will also receive market-priced warrants to purchase CORZ common stock, subject to certain commercial conditions.

"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, AMD's senior vice president and chief strategy officer of corporate development. Core Scientific CEO Adam Sullivan said the partnership positions the company "to support AMD's technology roadmap and grow our relationship meaningfully over time."

Core Scientific's second-quarter revenue reached $164.2 million, beating analyst estimates of $135 million and more than doubling the $78.6 million reported a year earlier. The company posted a loss of $0.06 per share, matching Wall Street expectations.

The partnership announcement coincided with significant infrastructure expansion. Core Scientific increased its total leased customer power capacity to approximately 1.1 gigawatts, representing more than $24 billion in potential contracted revenue. As of mid-July, the company was billing customers for 437 megawatts of capacity, equivalent to roughly $635 million in annualized GAAP colocation revenue.

Capital expenditures climbed to $797.5 million during the quarter from $389.2 million in the first quarter, while liquidity increased to $1.82 billion from $1.04 billion, supported in part by $4.28 billion in debt issuance.

Retail investor sentiment turned bullish, with message volume on Stocktwits increasing 300% over the 24-hour period. The rebound follows a 9% decline in the previous session after a downgrade from Keefe Bruyette. CORZ shares are up over 40% year-to-date and have gained more than 50% over the past 12 months. AMD's stock fell more than 5% in pre-market trading on the announcement.