Bernstein Analyzes Core Scientific-AMD Partnership: $14 Billion Revenue Projected Over 15 Years

On July 28, 2026, data center operator Core Scientific announced that it had entered into a 15-year strategic infrastructure partnership with AMD. Bernstein analysts estimate that this contract will generate at least $14 billion in revenue over the next 15 years, assessing that it will fundamentally transform Core Scientific's business model. The initial 530-megawatt (MW) capacity commitment and the 30 million warrants granted to AMD are key elements demonstrating the strength of the partnership between the two companies.

Bernstein analyzed that this contract provides a long-term financial floor for Core Scientific. The $14 billion in 'base contract revenue' serves as a strategic anchor, creating predictable cash flow unlike the volatile revenue from cryptocurrency mining. Analysts foresee this partnership as a key driver that will reshape Core Scientific's business model into high-value data center operations, going beyond simple facility leasing.

This partnership between Core Scientific and AMD is more than just an infrastructure contract; it will be a historic turning point for a Bitcoin mining company to emerge as a key infrastructure provider in the AI era.

The core of this agreement lies in the massive scale of revenue guaranteed over 15 years. Bernstein analyzed that this revenue will act as a strong support for Core Scientific's financial structure, underpinning the company's long-term survival and growth. This means that the company's profitability, which previously fluctuated based on Bitcoin prices, has now entered a predictable trajectory based on stable infrastructure rental income.

Analysis of Revenue Metrics and Contract Structure

According to Bernstein's detailed analysis, Core Scientific is expected to generate approximately $1.8 million in revenue per megawatt annually through this partnership. While this is slightly lower than the average unit price of typical AI colocation contracts, the combination of a 15-year long-term agreement and the credit guarantee from a blue-chip company like AMD is evaluated as offering very high risk-adjusted profitability. Analysts projected that this would allow Core Scientific to record stable annual revenue of approximately $900 million.

• Initial infrastructure construction: Securing 530 megawatts (MW) of AI-dedicated capacity in the U.S.
• Maximum scalability: Potential to expand infrastructure up to a total of 2.5 gigawatts (GW) according to the disclosure dated July 28, 2026.
• Long-term revenue guarantee: Minimum of $14 billion in base contract revenue over 15 years, with a 2.5% annual price escalation applied.

In this deal, AMD acts as more than just a customer; it serves as a credit guarantor for the 'neocloud' lease. This structure significantly reduces the financial risk associated with Core Scientific's infrastructure construction. Furthermore, AMD has been granted warrants to purchase 30 million shares of Core Scientific common stock based on commercial terms, further solidifying the strategic interests of both companies.

Wall Street's reaction is also positive. On July 30, 2026, Keefe, Bruyette & Woods (KBW) upgraded its investment rating for Core Scientific to 'Outperform.' Analysts assessed that this AI infrastructure contract would serve as a growth engine powerful enough to more than offset the uncertainties caused by the reduction in mining rewards following the Bitcoin halving.

Strategic Pivot and Long-term Growth Potential

Core Scientific's recent move is part of a strategy to move away from the volatility of Bitcoin mining rewards and establish a more stable business structure. As confirmed in the Q2 2026 earnings report, the company is diversifying its profit structure by transitioning its existing mining capabilities into high-performance computing infrastructure. This is expected to significantly mitigate the risks of being directly exposed to price fluctuations in the cryptocurrency market.

From a technical perspective, the initial capacity of 530MW will be used to support customers using AMD's high-performance chips. Core Scientific already possesses data center infrastructure capable of running AI, and this partnership allows the company to maximize the utilization rate of those facilities. In particular, the potential for expansion up to 2.5GW serves as a foundation for Core Scientific to significantly increase its market share in line with future growth in AI demand.

Mechanisms to enhance financial stability are also notable. The 2.5% annual revenue escalator applied over the 15-year contract period protects against profitability erosion due to rising operating costs. Additionally, the 30 million warrants granted to AMD are designed to ensure both companies share in long-term growth, confirming that this is a strategic alliance beyond a simple customer relationship.

In conclusion, Bernstein's analysis emphasizes that Core Scientific has been reborn as a key infrastructure partner in the AI era, beyond being a simple mining company. The combination of a 15-year long-term contract and a powerful partner like AMD provides clear visibility to investors. As of July 31, 2026, price targets for Core Scientific are trending upward among analysts, reflecting the market's confidence in the company's new growth trajectory.