What happened with Core Scientific's rejected buyout? In October, shareholders declined a $9 billion acquisition offer from CoreWeave, which included a stock exchange of 0.1235 shares per CoreWeave share for each share of Core Scientific. This rejection now seems justified, as Core Scientific has forged a substantial partnership with AMD just seven months later.
CoreWeave proposed the acquisition in July, suggesting it was a necessary move in consolidating AI infrastructure capabilities. However, the all-stock format put CORZ shareholders at the risk of CoreWeave's performance without any immediate cash benefits, which raised concerns about the valuation. Ultimately, by October 30, the proposed deal fell through.
So, how does AMD fit into the picture? On July 28, 2026, Core Scientific unveiled a transformative partnership with AMD, slated to deliver over 500 megawatts of AI-ready data center capacity, expected to escalate to 2.5 gigawatts as needs grow. This agreement reflects a shift toward creating specialized facilities for AI and high-performance computing, indicating a commitment beyond merely renting space.
Core Scientific has pivoted dramatically from its origins in Bitcoin mining to focusing on high-density colocation services for AI applications. The company was once a leader in Bitcoin mining operations in North America but found itself in bankruptcy in late 2022. Now, it has shifted its business model, with the majority of revenue coming from colocation rather than mining activities.
While Core Scientific continues some Bitcoin mining operations, this has transitioned into a secondary focus. A report detailing a substantial net loss in the second quarter of 2026 emphasizes the ongoing challenges the company faces.
What are the implications of the AMD partnership for investors? By choosing to collaborate with AMD rather than going through with the CoreWeave acquisition, Core Scientific retains strategic options. The initial commitment of 500 megawatts, coupled with a route toward 2.5 gigawatts, signals that AMD views this alliance as a long-term investment rather than a one-time agreement. The partnership includes a warrant option allowing AMD to acquire Core Scientific stock at future market prices, further strengthening their relationship as the collaboration develops.