Core Scientific Charts a New Course with AI Infrastructure Expansion

Core Scientific US21874A1060

Core Scientific, a major player in digital infrastructure, is implementing a significant strategic pivot. The company is actively expanding its high-performance data center operations to serve the artificial intelligence (AI) sector, while continuing its established core business of digital asset mining. This move toward diversification is designed to reduce the firm's exposure to the inherent volatility of cryptocurrency markets.

The broader digital asset infrastructure industry is increasingly branching out into AI and high-performance computing, providing a relevant context for Core Scientific's strategic direction. For investors, the successful execution of this shift will be a key focus, particularly the progress in retrofitting data centers and the growth trajectory of its new revenue streams.

The company's latest financial results, covering the third quarter of 2025, show a total revenue of $81.1 million. Revenue from its high-density colocation (HDC) services, essential for complex AI and computing tasks, increased to $15.0 million, up from $10.3 million in the same period the previous year. This segment also saw its gross margin improve to 26%. Overall, Core Scientific reported a quarterly gross profit of $3.9 million.

A central pillar of the new strategy is a long-term commercial partnership with CoreWeave. This agreement involves providing substantial infrastructure capacity and is expected to become a major revenue driver beginning in fiscal year 2026. For new contracts with CoreWeave, the company anticipates gross margins as high as 80%. It is noteworthy that a previously proposed merger agreement with CoreWeave was not approved by shareholders and was terminated on October 30, 2025. However, the commercial colocation contracts between the two firms remain firmly in place. In fact, CoreWeave provided financing for a portion of Core Scientific's capital expenditures during Q3 2025.

The strategic expansion centers on building out its HDC services. Currently, the majority of the company's revenue still originates from its proprietary digital assets operations, but management expects rapid sales growth from the colocation division to alter this balance. The planned date for the release of the next quarterly report is February 25, 2026.