Core Scientific secures major AI infrastructure contracts, transitioning from crypto mining to dedicated GPU services and HPC workloads.

Core Scientific is transitioning its business model from Bitcoin mining to AI infrastructure development. The company constructs and manages large-scale data centers that provide power, cooling, and space for AI computing, leveraging an existing advantage in grid-connected power capacity. Most of these assets can become operational within the 12 to 14-month timeframes requested by hyperscalers.

The company secured a major partnership with fast-growing AI cloud provider CoreWeave, encompassing a total contracted capacity of 590 MW to support long-term computational infrastructure demands. Core Scientific currently operates 243 MW of that capacity, generating more than $350 million in annualized revenue. The remaining 347 MW will be delivered progressively over the next 12 months. Management projects average annual run-rate revenues of approximately $850 million from this contract over the next 12 years, with long-term gross margins estimated between 75% and 80%.

In the first quarter of 2026, Core Scientific recorded a 44% year-over-year increase in total revenues, driven primarily by colocation operations, which surged 801% year-over-year. Investment firm Jackson Peak Capital highlighted the company's position in its Q1 2026 investor letter: "A position worth highlighting this quarter is Core Scientific, Inc. (NASDAQ:CORZ). We re-engaged with CORZ during Q1 after exiting in Q4, as the stock retraced to attractive levels just as we were looking to add to the AI infrastructure theme on the developments above. Specifically, CORZ is a beneficiary of the compute shortage as it has valuable data center co-location capacity, which is structurally short of supply heading into the remainder of 2026 as the leading AI labs and hyperscalers all look for power and shovel-ready sites. CORZ is one of the few public companies with [the capacity to meet these demands]."

Financial metrics show that Situational Awareness maintains a significant position in the company, with a stake valued at $389,086,756, reflecting continuing market demand for AI data storage facilities.