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Core Scientific’s 104 megawatt Bitcoin mining data center in Marble, North Carolina

Carey McKelvey

AUSTIN — For five years, bitcoin miner Core Scientific has quietly been diversifying out of mining and into artificial intelligence, a market that will require immense amounts of power to handle the training of AI models and the massive workloads that follow.

The move is no longer a secret.

On Monday, Core Scientific announced a 12-year deal with cloud provider CoreWeave to provide infrastructure for use cases like machine learning. Core Scientific said the agreement, which expands upon an existing partnership between the two companies, will add revenue of more than $3.5 billion over the course of the contract.

CoreWeave, backed by Nvidia, rents out graphics processing units (GPUs), which are needed for training and running AI models. CoreWeave was valued at $19 billion in a funding round last month. Core Scientific will deliver about 200 megawatts of infrastructure to CoreWeave’s operations.

Core Scientific, which emerged from bankruptcy in January, has been mining a mix of digital assets since 2017. The company began to diversify into other services in 2019.

“The best way to think about bitcoin mining facilities is that we are essentially power shells to the data center industry,” Core Scientific CEO Adam Sullivan told CNBC.

Sullivan jumped into the role of CEO while the company was still in the throes of bankruptcy, which resulted from the collapse of bitcoin in 2022. Since then, the former investment banker has settled debts with angry lenders and further beefed up the company’s non-bitcoin business as it reentered the public market.

Bitcoin miners are shifting to AI

Though Core is up more than 40% since relisting earlier this year, its market capitalization of around $865 million is significantly lower than its valuation of $4.3 billion in July 2021.

Demand for AI compute and infrastructure surged after OpenAI unveiled ChatGPT in Nov. 2022, setting off a rush of investment in AI models and startups. Meanwhile, Core Scientific and other miners like Bit Digital, Hive, Hut 8, and TeraWulf have been looking to bolster their revenue streams after the so-called bitcoin halving in April cut rewards paid out to bitcoin miners by 50%.

Many have been retrofitting their massive facilities to meet the needs of the market.

“Bitcoin miners, often stationed in energy-secure and energy-intensive data centers, find these facilities ideal for AI operations as well,” said James Butterfill, head of research at digital asset firm CoinShares.

Butterfill said the the overlap is leading to a competition for rack space between bitcoin mining and AI activities. While AI operations require up to 20 times the capital expenditure of bitcoin mining, they’re more profitable, according to a report from CoinShares.

“The introduction of AI activities leads to increased depreciation and amortization, which can enhance gross profit margins,” Butterfill said.

According to CoinShares, Bit Digital derives 27% of its revenue from AI. Hut 8 generates 6% of sales from AI, and Hive, which has data centers in Canada and Sweden, gets 4% of its revenue from these services.

Read more about tech and crypto from CNBC Pro

Hut 8 said in its first-quarter earnings report that it had purchased its first batch of 1,000 Nvidia GPUs and secured a customer agreement with a venture-backed AI cloud platform as part of its expansion into new technologies offering higher returns.

“We finalized commercial agreements for our new AI vertical under a GPU-as-a-service model, including a customer agreement which provides for fixed infrastructure payments plus revenue sharing,” said Hut 8 CEO Asher Genoot.

Genoot added that the company expects to begin generating revenue in the second half of the year at an annual rate of about $20 million.

Bit Digital had 251 servers actively generating revenue from its first AI contract as of the end of April, and the company said it earned about $4.1 million of revenue from the operation that month.

Iris Energy expects to generate between $14 million and $17 million in annual revenue from its AI cloud services. Core Scientific’s expanded arrangement with CoreWeave is expected to produce annual revenue of $290 million.

Large-scale bitcoin miners are competing head on with AI companies for power: Marathon Digital CEO

“While we intend to remain one of the largest and most productive bitcoin miners, we expect to have a diversified business model and more predictable cash flows,” Sullivan said.

Bitcoin’s volatility has made mining a challenging business.

Though bitcoin is currently up more than 150% in the past year to around $69,000, the bear market of 2022 sent many miners into bankruptcy or forced them to shutter altogether.

Complicated move to AI

Pivoting to AI isn’t as simple as repurposing existing infrastructure and machines, because high-performance computing (HPC) data center requirements are different, as are the needs of the data network.

“Besides transformers, substations, and some switch gear nearly all infrastructure miners currently have would need to be bulldozed and built from the ground up to accommodate HPC,” Needham analysts wrote in a report on May 30.

The rigs used to mine bitcoin are called Application-Specific Integrated Circuits (ASICs). They’re built specifically for crypto mining and can’t be used to do other things.

Needham estimates that HPC data centers run at $8 million to $10 million per megawatt in capex, excluding GPUs, whereas bitcoin mining sites typically operate at $300,000 to $800,000 per megawatt in capex, not including ASICs.

Core’s Sullivan says there’s a lot of synergy between the two businesses.

“One of the most exciting parts about the bitcoin mining business is we have access to large amounts of power across the United States with access to fiber lines,” he said.

Beyond its partnership with CoreWeave, Core Scientific has also announced that over the next three to four years, it’s working to convert 500 megawatts of its bitcoin mining infrastructure across the country to HPC data centers.

Sullivan said the retrofit is manageable because the company owns and controls all of its data center infrastructure.

“There are components that we have to purchase to retrofit for HPC, but it is things that we can easily acquire,” he said.

All eyes are on AI at SXSW

In the next one to two years, Needham analysts estimate that large publicly traded bitcoin miners are expected to more than double power capacity, including both their mining and HPC business expansion plans.

Clean energy is a popular choice because it’s the cheapest power source in many markets. Miners at scale compete in a low-margin industry, where their only variable cost is typically energy, so they’re incentivized to migrate to the world’s cheapest sources of power. An industry report estimates the bitcoin network is 54.5% powered by sustainable electricity.

The Electric Power Research Institute estimates that data centers could take up to 9% of the country’s total electricity consumption by 2030, up from around 4% in 2023. Tapping into nuclear energy is seen by many as the answer to meeting that demand.

TeraWulf powers its mining sites with nuclear energy, and is looking to get into machine learning. So far, the firm has two megawatts dedicated to HPC capacity, though it has plans to transition its energy infrastructure toward AI and HPC.

OpenAI CEO Sam Altman told CNBC last year that he’s a big believer in nuclear when it comes to serving the needs of AI workloads.

“I don’t see a way for us to get there without nuclear,” Altman said. “I mean, maybe we could get there just with solar and storage. But from my vantage point, I feel like this is the most likely and the best way to get there.”

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Tesla can’t buy land in Australia because CEO Elon Musk is so ‘[redacted]’ 

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Tesla can't buy land in Australia because CEO Elon Musk is so '[redacted]' 

Tesla is trying to use a piece of property in Australia, near Adelaide, in order to build a battery factory and Tesla showroom. But it’s facing steep opposition from locals, most of whom cite dissatisfaction with Tesla CEO Elon Musk as their reason to oppose the project.

The plans center on Marion, a small city of population 4,101, a suburb of Adelaide, the capital of South Australia.

Last month, a developer submitted plans to use a piece of land referred to as Chestnut Court Reserve, which has been inaccessible to the public since 2016 due to contamination concerns. Plans to develop the location would involve a requirement to clean up the contamination on the site.

They would also involve the cutting of several trees on the site, some of which have been deemed as “dead or ill health,” with a plan to plant trees at another site to make up for any removals.

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The developer said it would use this land to build a new fit-for-purpose factory facility that would be used by Tesla both as a showroom and service center for Tesla vehicles, and also a facility that could be used for “repurposing of Tesla batteries.”

The plan doesn’t go too deep into the specifics of how said repurposing would happen, but it could involve using Tesla vehicle batteries in Powerwalls, or in Tesla’s Powerpack grid storage projects, which are quite popular in South Australia, where they have helped to solve some of the region’s significant power stability problems.

The developer makes the case that Tesla already has a presence in the area in neighboring Tonsley, that Tesla’s mission (and the specific mission of a battery recycling center) supports the environmental goals of the community, and that the facility would create around 100 full-time jobs in the local community, including highly skilled jobs like battery researchers.

All in all, the developer thinks it would inject $56 million into the local community, quite a nice chunk of change for the small town.

And the city council also supports the plan, thinking that the job and economic benefits are worth it, particularly given that the land is not being used for anything else.

The plans were submitted, the residents were consulted, and now that all the chips are on the table… the residents aren’t having it.

Residents respond with a lot of language we shouldn’t say here

The local community gave significant pushback to this idea, with some ~95% of residents disapproving the plan. The city received 948 comments on the plan, which sounds like quite a lot for a city of 4,101 people. However, half of those comments came from outside the city’s area.

But among those comments from the immediate area of the development, only 11 comments favored the plans, with 121 opposing them (that’s 92% opposition).

Among the comments (quoted by The Guardian) come these gems, which wonderfully showcase the stereotypical Australian predilection for colorful language:

  • “Because Elon Musk is a [redacted] human being and a [redacted]!”
  • “Elon Musk and Tesla are a [redacted] on humanity”
  • “Elon Musk is a full blown [redacted]”
  • “Destroying trees to build a factory for a company owned by a [redacted] would be a vile choice”
  • “We should not support and put money in the pockets of a [redacted] who openly [redacted] salutes, is [redacted] human”

We’ll let you try to fill in some of those words, though we’re pretty sure what some of them are (and, honestly, while I somewhat understand the point of redacting profanity in public records, I’d say it is a little absurd to redact “nazi”).

The plans haven’t received their final vote yet, and the council still seems like it wants to convince the local community to go forward with them. But some residents suggest that the site could be better used by other companies, and that alternate uses could help to preserve that land and also avoid potential image concerns for the area as protests against Tesla continue globally.

Some other comments, perhaps wrongly, called the possible building “a noisy, ugly, planet-destroying temple to billionaires.”

While it’s disappointing to see a proposed recycling facility referred to thusly (although Tesla does have a questionable history when it comes to following local environmental rules), it’s just another sign of how Tesla CEO Elon Musk is drastically affecting the brand, and holding it back from its stated mission to advance sustainable transport.

Response shows once again that Musk is harming Tesla

The responses show just how damaging Tesla CEO Elon Musk has been to the company with his recent public advocacy, which has included performing back-to-back unambiguous Nazi salutes in front of a large crowd, agreeing with a defense of Hitler’s actions in the Holocaust, and many other white supremacist statements.

His advocacy hasn’t been limited just to the United States, where he is currently working to balloon the US deficit and is the largest funder of the republican party who are trying to tax EVs and send US jobs to China. He’s also meddled in other countries’ politics, including support for German neo-Nazis.

These actions have driven protests against the companyembarrassed owners and pushed many customers away, and even resulted in a hack that doxxed many Tesla owners.

The backlash, like Musk’s advocacy, has been global. Tesla sales are dropping in most regions, even as EV sales rise as a whole. Specifically in Australia, Tesla sales saw a big drop year-over-year. And this has applied to corporate customers too, with Tesla losing corporate sales as multiple companies have cited their distaste with the CEO.

While Musk has tried to brush these falling sales numbers off, it’s clear that he personally is doing incredible brand damage to the company.


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Plenty of Tesla alternatives and a new Ford Pro team to help pay for them

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Plenty of Tesla alternatives and a new Ford Pro team to help pay for them

For years, Tesla has been the go-to EV recommendation for “normals” looking for a painless, low-effort experience from their first electric cars, but Elon Musk’s political antics are causing people to shop elsewhere. On today’s episode of Quick Charge, we’ll discuss some options … and how you might be able to pay for them!

Speaking of Tesla alternatives, the Ford F-150 Lightning is the electric truck sales king once again, while the E-Transit van is now selling for the same (or less) than the gas version and Ford Pro launches a new incentive consulting service to help you pay for them.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

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Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.


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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

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BYD takes control in another key EV market as its global push heats up

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BYD takes control in another key EV market as its global push heats up

The world’s leading electric vehicle (EV) maker is rapidly expanding overseas. After taking control of vehicle sales in Germany last year, BYD is about to do the same in another key overseas EV market.

BYD to take control of EV distribution in Australia

Last August, BYD reached an agreement with Heden Mobility Group to acquire Heden Electric, which was responsible for importing its vehicles and spare parts for sale in Germany.

The move gives BYD more control over pricing and other areas of distribution as it expands the brand overseas. By taking over control, the company can sell its vehicles directly to buyers. And, it can also set prices.

According to EVDirect, BYD’s official distributor in Australia, the company is preparing for a similar move in the region. Luke Todd, founder and chairman of EVDirect, said the takeover would help unlock BYD’s potential in Australia.

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Todd said the first phase was proving that the “BYD brand would thrive here,” and the next phase will make EV ownership “easier and more accessible than ever.”

BYD-control-EV-distribution
BYD Sealion 7 electric SUV (Source: BYD)

Since launching its first vehicle, the Atto 3 SUV, in 2022, BYD has become one of the fastest-growing car brands in Australia.

BYD now offers a complete lineup of six vehicles, ranging from the low-cost Dolphin and Atto 3 to mid-size SUVs (Sealion 6 and 7), electric sedans (Seal), and even a pickup (Shark 6).

BYD-control-EV-Australia
BYD Shark PHEV pickup truck launch in Australia (Source: BYD)

Earlier this year, the company introduced a new entry-level “Essentials” trim, slashing prices across its entire lineup.

According to TheDriven, BYD has three of the top 10 best-selling electric vehicles (EVs) in Australia as of April. The Sealion 7, launched in just February, placed fifth with 1,473 units sold, trailing the Tesla Model Y (3,394), Model 3 (2,266), MG4 (1,698), and Kia EV5 (1,509).

BYD-control-EV-Australia
BYD Sealion 7 launch event in Australia (Source: BYD)

BYD’s Atto 3 took sixth (956) while the Seal (637) and Dolphin (431) placed ninth and 14th through the first four months of 2025, respectively.

Taking control of distribution is expected to help improve service for current BYD drivers and will likely boost EV adoption in Australia.

Electrek’s Take

BYD’s sales are surging in China and overseas. In April, BYD sold more electric vehicles (EVs) in Europe than Tesla for the first time. Now, it’s launching its best-selling and most affordable electric car, the Dolphin Surf (also known as the Seagull EV in China).

S&P Global Mobility is calling for BYD to more than double its sales in Europe this year to around 186,000 units.

And clearly it’s not just Europe. BYD is quickly establishing its presence in major overseas markets, including Mexico, Brazil, Thailand, Australia, New Zealand, and many others.

With local production coming online and new, custom-tailored vehicles launching, BYD is laying the groundwork to continue gaining global market share over the next few years as the industry shifts toward electric vehicles. And that’s not even scratching the surface, with BYD’s new battery and ultra-fast EV charging technology set to change the game.

Source: EVDirect, TheDriven

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