Core Scientific and AMD's $14 Billion Deal: Bernstein Analysts Reveal Details of the New Phase of Miner Transformation
The partnership between Core Scientific and AMD, announced on July 28, promises to be one of the most significant in the industry. According to my analysis, based on Bernstein data, the initial 530 MW contracts could generate over $14 billion in revenue over 15 years. This is not just a capacity lease deal — it is a strategic move where the chip manufacturer effectively takes on the role of a credit guarantor for the Bitcoin miner's infrastructure.
Deal Structure: Risk Decreases, Margins Increase
Bernstein breaks down the contracted 530 MW into two parts: 377 MW of direct triple-net lease for AMD and 152 MW for an unnamed cloud provider, but with credit support from the chip manufacturer itself. This structure dramatically reduces financing costs and counterparty risk compared to traditional models, where the lessee relies on external loans. AMD also received warrants to purchase 30 million shares of Core Scientific at $23.47 per share, with vesting tied to achieving the target of 2.5 GW.
The average annual revenue under the agreement will be about $0.9 billion, or approximately $1.8 million per megawatt. This is 5–25% below the range of $1.9–2.4 million per megawatt in recent miner deals for hosting AI equipment. However, the blended EBITDA for the deal is estimated at an impressive 96%. The direct lease of 377 MW under the triple-net model is structured with a margin for AMD close to 100% — meaning Core Scientific bears virtually no operational risks for these capacities.
Core Scientific's capital expenditures under the deal will amount to $11–12 million per megawatt, with a total of about $6 billion. Approximately $1 billion has already been spent, and the company plans to raise the remaining amount through project bonds. This confirms that miners are transitioning from speculative mining to a capital-intensive infrastructure model.
New Trend: Chip Manufacturers Become Anchor Tenants
The Core Scientific and AMD partnership marks a new phase in the transformation of former Bitcoin miners into operators of infrastructure for artificial intelligence. Unlike early contracts, where tenants were backed by tech giants like Google, now AI chip manufacturers themselves are ready to directly become anchor tenants and support multi-year projects. This reduces risks for miners and accelerates their transition into the AI segment.
Among similar recent deals, the following stand out:
- Hut 8 announced the allocation of 704 MW to a tenant identified by FT as Nvidia;
- AMD reserved 200 MW at Riot Platforms.
Recall that Core Scientific has already paid Block $41.9 million to terminate a contract for the supply of mining chips, in order to accelerate diversification into AI. This underscores the seriousness of the company's intentions.
My expert opinion: The Core Scientific and AMD deal is not just a financial story, but an indicator of market maturity. Miners are no longer seen as outsiders, but as key players in the race for AI infrastructure. However, the high margin (96% EBITDA) implies that Core Scientific is taking on significant risks related to the construction and maintenance of data centers. If AMD fulfills its obligations, this will set a precedent for dozens of similar deals in the coming years.