July 28 (Reuters) - AMD on Tuesday signed a deal with Core Scientific to secure up to 2.5 gigawatts of data center capacity as the chip firm expands infrastructure to meet growing demand for AI computing.
Shares of Core Scientific jumped 6% in premarket trading, while AMD's stock was down 4%, tracking other chipmakers.
Demand for electricity, land and data center facilities has surged as cloud providers and enterprises ramp up investments in AI infrastructure.
Under the deal, AMD will receive market-priced warrants to purchase Core Scientific common stock, subject to certain commercial conditions. Financial terms of the deal were not disclosed.
The partnership gives AMD access to more than 500 megawatts of Core Scientific's AI-ready data center capacity starting in 2027, which the chip maker's customers can use to deploy artificial intelligence systems. This capacity can be expanded to 2.5 gigawatts.
Core Scientific, which has been shifting from crypto toward hosting AI and high-performance computing workloads, will also work with AMD on physical infrastructure design and the deployment of AMD's chips and software.
"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, chief strategy officer of corporate development at AMD.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy Leo)
