Advanced Micro Devices, Inc. (NASDAQ:AMD) and Core Scientific, Inc. (NASDAQ:CORZ) announced an infrastructure partnership on July 28 that starts with more than 500 megawatts of U.S. data center capacity in 2027 and can expand to 2.5 gigawatts.
The commercial link is a deployment bottleneck. AI accelerators cannot generate revenue without energized land, cooling, networking, and buildings designed for high-density racks. Core Scientific supplies that infrastructure, while the companies will jointly design facilities around AMD Instinct GPUs, EPYC CPUs, and ROCm software. For AMD, reserving compatible capacity can turn customer interest into installable systems rather than stranded chip demand, although the agreement discloses no GPU-purchase commitment.
For illustration purposes only. Photo by Brett Sayles on Pexels
The full 2.5 GW is not firm capacity. Core Scientific said the partnership is anchored by 15-year agreements for approximately 530 MW across five sites and more than $14 billion of potential base contracted revenue. That company estimate is not recognized revenue, and no disclosed GPU-purchase commitment lets investors translate it into AMD chip sales.
Advanced Micro Devices, Inc. (NASDAQ:AMD) will receive market-priced warrants to buy Core Scientific common stock, subject to commercial conditions. That feature aligns AMD with the infrastructure provider’s execution and gives it potential equity upside. It may also dilute existing CORZ holders if warrants vest and are exercised, but the companies did not disclose enough terms to quantify that effect.
For Core Scientific, Inc. (NASDAQ:CORZ), the channel is the other side of that deployment. It can monetize power and converted sites through high-density colocation tied to AMD customer installations, rather than relying solely on digital-asset mining. The relationship also broadens its AI customer base after shareholders rejected a proposed all-stock sale to CoreWeave in October 2025 and the merger was terminated. Delivery still requires large capital outlays, site conversions and dependable power, while undisclosed pricing and the 2027 start date leave revenue, schedule and demand risk.
Insider Monkey’s database showed 134 hedge-fund portfolios with AMD long positions as of Q1, 2026, up from 132 as of Q4, 2025. Those filings predate the Core Scientific agreement and show established long-side participation, not a reaction to it. July 15 data showed 39,768,152 AMD shares sold short, or 2.45% of public float. AMD’s March 28 debt table listed conventional senior notes and no convertible balance, while no stock merger is pending. The percentage is therefore a relatively clean but modest bearish or hedging signal, not a crowded short.
While we acknowledge the risk and potential of AMD and CORZ as investments, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD and CORZ and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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