Core Scientific shifts to AI colocation with $77.5M Q1 2026 revenue and strong profit margins amid supply constraints.

Core Scientific is transitioning from Bitcoin mining to becoming a high-density AI colocation provider, reporting $77.5 million in colocation revenue for Q1 2026 with a 57% gross profit margin. This shift is supported by a multi-gigawatt power pipeline and a partnership with CoreWeave, validating its AI infrastructure focus with over $10 billion in contracted revenue and 590MW leased. Despite risks like high leverage and customer concentration, Core Scientific offers a unique investment opportunity in scarce AI power infrastructure amid industry-wide supply shortages.