CoreWeave to Acquire Core Scientific in $9 Billion All-Stock Deal Amid AI Data Center Demand
CoreWeave (CRWV) announced it will acquire data center provider Core Scientific (CORZ) in an all-stock transaction valued at $9 billion. Under the terms, Core Scientific shareholders will receive 0.1235 shares of CoreWeave for each share held. Despite the strategic intent, shares of both companies dropped sharply after the news, with CoreWeave down 3% and Core Scientific plunging 17.6%. Notably, Core Scientific shares had surged roughly 50% since reports of the deal leaked in late June.
Bringing Data Center Infrastructure In-House
The acquisition aims to strengthen CoreWeave’s position in the AI data center market by integrating Core Scientific’s nationwide infrastructure. This move is expected to add two gigawatts or more of power capacity directly to CoreWeave’s portfolio, supporting large-scale AI development projects. By internalizing energy assets, CoreWeave plans to reduce operational risks and improve efficiency in meeting AI cloud computing’s significant power demands.
Michael Intrator, CoreWeave’s CEO and chairman, emphasized that owning high-performance data center infrastructure will enhance operating efficiency and reduce risks tied to future expansion. The integration is positioned to solidify CoreWeave’s growth trajectory in the competitive AI supply chain.
Financial Impact and Strategic Benefits
- The deal will eliminate over $10 billion in future leasing costs, as CoreWeave currently rents sites from Core Scientific.
- CoreWeave will acquire approximately $1.6 billion in assets through this transaction.
- The company forecasts the acquisition to be leverage-neutral, maintaining a balanced financial position.
CoreWeave went public earlier this year with one of the most notable IPOs, marking a rebound in investor interest for cloud infrastructure companies. Its market capitalization now exceeds $75 billion, a significant increase from the roughly $20 billion valuation during its last private funding round.
This acquisition aligns with CoreWeave’s strategy to scale its AI-focused infrastructure capabilities internally rather than rely on leasing, potentially reducing long-term costs and operational dependencies.
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