Core Scientific’s stock (CORZ) jumped over 12% in the first hours of trading on Aug. 6, following the expansion of a billion-dollar deal with artificial intelligence cloud provider CoreWaeve. 

CoreWaeve is increasing its hosting deal with Core Scientific, seeking additional resources for its Nvidia graphics processing units (GPUs). According to an announcement on Aug. 6, Bitcoin ( BTC ) miner Core Scientific will modify its infrastructure to supply approximately 112 incremental megawatts to CoreWeave’s GPUs.

Core’s shares are up 12.1% at the time of writing, trading at $9.22 on the Nasdaq. The company projects to generate about $2 billion in additional revenue from the 12-year hosting agreement with the AI company.

Core Scientific shares climb 12% after CoreWeave expands GPU hosting deal image 0 CORZ trading at the Nasdaq on Aug. 6. Source: Google Finance

Refused buyout

The expansion comes nearly 60 days after Core declined a buyout offer from CoreWeave.

On June 3, the firms announced a $3.5-billion deal under which Core would provide 200 MW of infrastructure to host CoreWeave’s high-performance computing (HPC) operations. Just a few days later, on June 6, Core disclosed an unexpected and unsolicited buyout offer from CoreWeave of $5.75 per share. Board members rejected the offer, citing a low valuation.

Previously, in March, the companies inked a leasing agreement with potential revenue of more than $100 million for a Tier 3 data center in Austin, Texas. The site, formerly housed by Hewlett Packard, was foreseen to deliver up to 16 MW of capacity for CoreWeave.

“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure,” said Core Scientific CEO Adam Sullivan.

The cumulative revenue of all contracts between the companies is now projected at $6.7 billion.

Site modifications

Updates to Core’s infrastructure to supply the additional demand are expected to begin in the coming months, with operational status scheduled for the first half of 2026.

CoreWeave will fund all capital investments required to modify the existing infrastructure into data centers customized for dense HPC.

The new agreement also contains provisions for two five-year renewal terms. Per the announcement, CoreWeave retains the option to further expand the deal with up to 118 MW of infrastructure at another Core Scientific site.

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