AMD announced a 2.5-gigawatt AI data center capacity deal, adding significant GPU power purchase commitments for enterprise customers.

Advanced Micro Devices (AMD) fell approximately 4% in premarket trading after announcing an agreement with Core Scientific, a data-center operator transitioning from cryptocurrency mining into artificial intelligence and high-performance computing. The deal grants AMD access to more than 500 megawatts of AI-ready capacity beginning in 2027, with potential to expand to as much as 2.5 gigawatts. Core Scientific's shares rose approximately 6% ahead of the market open.

Under the agreement, Core Scientific will collaborate with AMD on physical-infrastructure design and the deployment of AMD chips and software. AMD will receive market-priced warrants to purchase Core Scientific common stock, contingent on specified commercial conditions. The companies did not disclose additional financial terms.

The arrangement reflects surging demand for electricity, land, and data-center facilities as cloud providers and enterprises scale their AI infrastructure. AMD characterized the deal as broadening access to the infrastructure its customers require to deploy AI systems at scale. The initial 500-megawatt capacity represents slightly more than one-fifth of the potential 2.5-gigawatt total, indicating that most of the project's expansion remains subject to future agreement.

AMD's premarket decline occurred alongside weakness across the broader semiconductor sector, suggesting investors were balancing the company-specific agreement against wider concerns about AI spending trends and semiconductor valuations.