Advanced Micro Devices NASDAQ:AMD, a semiconductor company developing processors and AI computing products, fell approximately 4% in premarket trading after signing an agreement with Core Scientific NASDAQ:CORZ, a data-center operator moving from cryptocurrency mining into AI and high-performance computing. The agreement gives AMD access to more than 500 megawatts of AI-ready capacity beginning in 2027. The arrangement can expand to as much as 2.5 gigawatts, while Core Scientific shares increased approximately 6% before the market opened.
Core Scientific will work with AMD on physical-infrastructure design and the deployment of AMD chips and software. AMD will receive market-priced warrants to purchase Core Scientific common stock, subject to specified commercial conditions. The companies did not disclose the agreement's remaining financial terms.
Demand for electricity, land and data-center facilities has increased as cloud providers and enterprises expand their AI infrastructure. AMD said the arrangement would broaden access to infrastructure that its customers need to deploy AI systems at scale. Financially, the initial capacity represents slightly more than one-fifth of the possible 2.5-gigawatt total, showing that most of the project's potential scale remains subject to future expansion. AMD's premarket decline followed weakness across the semiconductor sector, suggesting investors were weighing wider concerns about AI spending and chip valuations alongside the company-specific agreement.