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Not all AI colocation deals are created equal. That’s the takeaway from Bernstein analyst Gautam Chhugani, who argues that headline return figures for bitcoin miners pivoting into AI infrastructure can be deeply misleading depending on who’s writing the check and how the contract is structured.
The poster child for this dynamic is Core Scientific, ticker CORZ, whose financial profile has been substantially shaped by its relationship with a single customer: CoreWeave.
One deal, outsized consequences
CoreWeave signed a 12-year, $10 billion co-location agreement with Core Scientific, a contract that became the cornerstone of CORZ’s premium valuation in the market. That deal committed Core Scientific to delivering roughly 590 MW of IT load by early 2027. Bernstein estimates that Core Scientific’s AI segment now accounts for approximately 43% of its enterprise value.
Core Scientific emerged from Chapter 11 bankruptcy in 2024, pivoting hard toward higher-margin AI and high-performance computing services. Bernstein raised its price target on CORZ to $24 from $17, while maintaining an Outperform rating on the stock.
When expectations outrun reality
In July 2025, CoreWeave announced it would acquire Core Scientific in an all-stock deal valued at roughly $9 billion. CORZ shares dropped approximately 17 to 20% following the announcement.
CoreWeave has effectively consolidated control over Core Scientific’s approximately 1.3 GW of power capacity through the acquisition arrangement.
What this means for the broader miner-to-AI trade
Announced data center deals in this space have crossed $90 billion in total value. Bernstein currently holds Outperform ratings on Core Scientific, IREN, Riot Platforms, and CleanSpark. MARA Holdings carries a Market Perform rating.
Bernstein’s analysis adds nuance to the miner-to-AI pitch. The returns are real, but they’re not uniform. How much a miner earns from AI colocation depends heavily on the deal structure, the creditworthiness and funding capacity of the customer, and the length of the contract. CoreWeave’s financial backing gave Core Scientific terms that most miners won’t replicate.
Investors watching this theme should pay close attention to contract duration, customer identity, and whether the AI revenue is backed by committed capacity agreements or softer arrangements. The difference between a $10 billion 12-year deal and a shorter, smaller contract isn’t just a matter of scale. It rewrites the entire investment thesis.
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