Core Scientific is making waves in the world of artificial intelligence with its recent expansion of the deal with CoreWeave. Russell Cann, the chief development officer at Core Scientific, sat down with CoinDesk to discuss the intricate details of the multi-billion dollar infrastructure agreement with CoreWeave, focusing on the differences between AI fleets and bitcoin mining operations.
The collaboration between Core Scientific and CoreWeave is not just a spur-of-the-moment decision. Core Scientific has been at the forefront of building application-specific infrastructure for data centers since its inception. Despite facing challenges such as filing for Chapter 11 bankruptcy protection in 2022, Core Scientific has managed to emerge stronger and more resilient in the ever-evolving crypto market.
The partnership with CoreWeave is a natural progression for Core Scientific, as the company has been a key player in the GPU hosting space for quite some time. This longstanding relationship and trust between the two companies have paved the way for this significant expansion into the AI realm.
One of the key strengths of Core Scientific lies in its ability to customize infrastructure to cater to specific applications. This level of detail is crucial in both bitcoin mining and AI operations, as each has different requirements for power infrastructure, cooling methods, hard drives, and connectivity.
The cost implications of building infrastructure for AI fleets are significantly higher than those for bitcoin mining operations. Core Scientific estimates that it could cost up to $12 million per megawatt for AI-related GPUs, compared to $750,000 per megawatt for bitcoin mining sites. The 500-megawatt deal with CoreWeave will require an investment of around $5 billion and is set to power approximately 100,000 homes in Texas.
Despite the size and scope of the CoreWeave agreement, it is just a fraction of Core Scientific’s total footprint in the industry. The company currently owns 1,600 megawatts of heavy electrical infrastructure and has 1,200 megawatts of power purchase agreements in place.
Core Scientific’s experience in utilizing high compute machines, such as GPUs for mining ether and hosting AI clusters, sets it apart from its competitors. The company’s involvement in the fast-paced world of bitcoin mining has equipped its team with the skills and knowledge needed to stay ahead of the curve.
In conclusion, Core Scientific’s expansion into AI through its partnership with CoreWeave is a testament to the company’s adaptability and expertise in building application-specific infrastructure. The collaboration showcases the seamless integration of AI and bitcoin mining operations, highlighting Core Scientific’s commitment to innovation and growth in the ever-changing crypto landscape.