Core Scientific (NASDAQ: CORZ) shareholders who spurned a $9 billion all-stock acquisition offer from CoreWeave in late 2025 are seeing their contrarian stance validated in real time. On July 28, 2026, the bitcoin-miner-turned-data-center-landlord announced a landmark infrastructure partnership with Advanced Micro Devices (NASDAQ: AMD) that grants the semiconductor giant access to more than 500 megawatts of U.S. data-center capacity starting in 2027, with expansion options reaching 2.5 gigawatts. The news sent CORZ shares surging in premarket trading and reignited debate over whether the shareholder vote preserved a far more valuable independent future.
The Deal That Wasn’t: CoreWeave’s $9 Billion Offer
In July 2025, CoreWeave — a specialized GPU cloud provider — proposed an all-stock merger valuing Core Scientific at approximately $9 billion, or $20.40 per share at announcement. The fixed exchange ratio meant the final payout would fluctuate with CoreWeave’s own share price, introducing uncertainty for CORZ holders. A vocal minority, led by Gullane Capital Partners founder Trip Miller, argued the offer dramatically undervalued Core Scientific’s irreplaceable power portfolio and operational track record. Miller predicted the company would secure “AI customers other than CoreWeave” — a forecast that now appears prescient.
AMD Partnership: Structure and Scale
The AMD agreement is substantially larger than initial headlines suggested. Regulatory filings reveal two distinct tranches: AMD directly leased 377 megawatts across sites in Pecos, Muskogee, and Hunt County, while an unnamed “neocloud” tenant leased an additional 152 megawatts at two other sites under terms that give AMD equipment protections and step-in rights if that tenant defaults. Together, the initial 529 megawatts of critical IT load nearly match the 590 megawatts Core Scientific currently leases to CoreWeave, which still accounts for 77% of first-half revenue. The company now touts $24 billion in potential contracted revenue across its entire leased portfolio, up from $14 billion tied to the AMD ecosystem alone.
Bull Case: Strategic Validation and Customer Diversification
The partnership achieves the core strategic objective independence advocates cited: proving Core Scientific’s sites, power access, and execution capability attract blue-chip technology partners beyond a single tenant. AMD’s direct 377-megawatt commitment — spread across three campuses — signals deep confidence in Core Scientific’s ability to deliver high-density colocation at scale. If AMD converts its reservation rights for the remaining 1,925 megawatts by the December 2028 deadline, the relationship could dwarf the CoreWeave anchor tenancy. Meanwhile, colocation revenue has already overtaken bitcoin mining, generating $136.7 million of $164.2 million in Q2 revenue, confirming the business model pivot.
Bear Case: Revenue vs. Equity Value and Execution Risk
Comparing $14 billion in potential 15-year revenue to a $9 billion implied equity value is apples-to-oranges. The revenue figure is gross, pre-construction, pre-operating expense, pre-tax, and undiscounted. The $9 billion was an announcement-date equity value; the actual consideration would have been CoreWeave shares at closing. Furthermore, only 529 megawatts are under signed lease; the remaining 1,925 megawatts are reservation rights subject to conditions. The neocloud tranche introduces counterparty risk — AMD has equipment protections but does not guarantee the neocloud’s lease payments. AMD also received warrants for up to 30 million CORZ shares at $23.47 (6.5 million vested immediately, ~2% dilution; full exercise ~9.3% dilution but injects ~$704 million cash). Core Scientific carries $4.4 billion in debt, including $3.3 billion of 7.75% senior secured notes issued in May, and faces ~$1 billion in future capex with only $264 million expected to be customer-funded. Unlike the CoreWeave conversions, the new Hunt County and Muskogee builds lack a fully committed project-finance structure.
Financial Implications: Debt, Dilution, and Delivery
The partnership shifts the critical test from customer acquisition to execution. Core Scientific must build on schedule, control costs, secure project financing, and generate returns that service debt, fund construction, and justify potential warrant dilution. Hedge fund interest is growing — 81 funds held CORZ at Q1 2026 end versus 76 the prior quarter — but positions predate the AMD announcement. The market will judge success by 2027 delivery of the initial 529 megawatts and conversion of AMD’s reservation pipeline into firm leases without excessive leverage or equity issuance.
Conclusion
Shareholders have been proven right about Core Scientific’s customer appeal; the AMD deal validates the strategic premise that the company’s power pipeline commands premium, diversified demand. Whether that translates into superior per-share value remains an open question contingent on execution, financing terms, and the ultimate scale of AMD’s commitment. For now, the vote looks prescient, but the scorecard is far from final.
FAQ
- Why did Core Scientific shareholders reject the CoreWeave offer? They believed the $9 billion valuation undervalued the company’s unique power infrastructure and its ability to attract multiple high-quality AI tenants, not just CoreWeave.
- How does the AMD deal differ from the CoreWeave relationship? AMD is a direct tenant for 377 MW and has protections on another 152 MW leased to a neocloud, diversifying Core Scientific’s revenue base. CoreWeave remains the largest single customer at 590 MW.
- What are the biggest risks to the AMD partnership’s value for CORZ shareholders? Execution risk on $1B+ of new construction, project financing terms for sites without customer funding, potential warrant dilution of up to 9.3%, and the fact that 1,925 MW of the 2.5 GW opportunity are only reservation rights, not signed leases.
