Shares of Core Scientific, Inc. (CORZ), a leading provider of data center solutions and high-performance computing (HPC) infrastructure, soared by 5.73% on Monday, fueled by a significant contract win in the rapidly growing artificial intelligence (AI) market.
The surge was driven by Core Scientific's announcement that CoreWeave, an AI startup and hyperscaler, has exercised its final option to contract for an additional 120 megawatts (MW) of digital infrastructure from Core Scientific. This expansion brings the total HPC infrastructure contracted by CoreWeave from Core Scientific to a substantial 500 MW, highlighting the company's pivotal role in supporting the burgeoning AI industry's demand for compute workloads.
The new contract is expected to add approximately $2 billion in cumulative revenue over the 12-year term, further bolstering Core Scientific's revenue streams and positioning it to capitalize on the AI boom. With the AI industry's relentless growth trajectory, this strategic move could unlock significant long-term growth prospects for the company.
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