Summary
Core Scientific, a leading provider of data center infrastructure, has announced a multi-billion dollar agreement with CoreWeave to expand its artificial intelligence (AI) capabilities. The deal will see Core Scientific build 500 megawatts of infrastructure specifically designed for AI clusters, with the first phase expected to come online in 2025 and 2026. This move marks another step in the company’s growing relationship with CoreWeave, which has a long-standing history of trust and collaboration.
Core Scientific’s Unique Advantage
Core Scientific’s success in building application-specific infrastructure for data centers gives it a significant advantage over other bitcoin miners who are now exploring AI computation. The company’s expertise lies in customizing every aspect of its infrastructure to suit the specific needs of each application, whether it be mining or AI.
Differences between AI Fleets and Bitcoin Mining
While data centers for both AI fleets and bitcoin mining may appear similar from the outside, there are significant differences once you step inside. For instance, power infrastructure is completely different for mining and AI applications. AI fleets require constant uptime, which necessitates expensive power redundancy measures such as batteries, backup generators, and uninterruptible power supply (UPS) systems.
Key Differences in Infrastructure Requirements
- Power infrastructure: AI fleets need constant uptime, while bitcoin mining operations can afford to switch machines on and off depending on electricity prices.
- Cooling methods: AI GPUs require air conditioning or liquid cooling, which consumes more energy than the fans or dielectric fluid used for bitcoin rigs.
- Hard drives: Different types of hard drives are used for AI fleets compared to bitcoin mining operations.
- Connectivity: More fiber and connectivity are needed for AI sites.
Why Core Scientific is Well-Suited for AI
Core Scientific’s experience in using high-compute machines, such as GPUs, gives it a leg up in building application-specific infrastructure. The company has been hosting AI clusters since 2019, long before the current ChatGPT and Nvidia hype. Its team has decades of experience building traditional data centers, which has prepared them for the fast-paced world of bitcoin mining.
The Impact of Bitcoin Mining on Core Scientific’s Team
Core Scientific’s involvement in bitcoin mining has shaped its team, making them more agile and adaptable to market conditions. The company’s ability to iterate quickly, like bitcoin miners, gives it an edge over competitors who are new to the space.
Conclusion
Core Scientific’s multi-billion dollar agreement with CoreWeave marks another significant step in its growth as a leader in AI infrastructure. With its unique advantage in building application-specific infrastructure and its experience in high-compute machines, the company is well-positioned to excel in the rapidly evolving world of AI computation.