CoreWeave, a cloud infrastructure company focused on artificial intelligence, said on Monday it will buy data centre provider Core Scientific in an all‑stock deal worth about $9 billion.
The deal grants CoreWeave ownership of 1.3 GW of power capacity across Core Scientific’s US data centres, plus an additional gigawatt for future growth.
CoreWeave will issue 0.1235 of its Class A shares for each Core Scientific share. The transaction is scheduled to close in Q4 2025, pending approval from regulators and shareholders.
Deal Overview
The acquisition will fold Core Scientific’s infrastructure under CoreWeave’s roof. Core Scientific emerged from bankruptcy and relaunched on Nasdaq in 2024. It now has over 300 employees and has worked with CoreWeave since 2018.
CoreWeave went public in March and its shares have risen fourfold since listing, despite dipping 3 % on Monday. Core Scientific shares fell nearly 18 % on the same day.
Why the Move Makes Sense?
By buying Core Scientific, CoreWeave gains long‑term control of its data centres. In a recent presentation, the company stated that it will eliminate $1 billion in future lease obligations. Chief Executive Mike Intrator told CNBC that not paying rent for the next 15 years will boost efficiency.
Owning facilities lets CoreWeave tailor them for high‑performance computing and AI workloads. Intrator noted that some questioned why CoreWeave did not build its data centres. He said it would have been a tough pitch to investors at the time.
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Financial and Operational Benefits
The all‑stock deal lets CoreWeave tap Core Scientific’s real estate and power assets without the need for new debt. CoreWeave can also explore financing options to fund future capital expenses at a lower cost of capital.
The move brings added flexibility in power procurement. It also bolsters CoreWeave’s track record in construction and site management.
The agreement will help “verticalize” CoreWeave’s footprint, the company emphasised. It seeks to increase profitability and ensure revenue growth. Owning the platform’s core layer, according to Intrator, will improve its efficiency and level of knowledge. The merger will expedite the large-scale deployment of AI and HPC workloads, he noted.
Market Reaction
Wall Street first reported talks between the two companies at the end of June. After shares rallied on that news, CoreWeave stock pulled back on the formal announcement.
Core Scientific shares also saw a sell‑off as investors weighed dilution from the new share issue. Despite the initial drop, analysts say the tie‑up could pay off if cost savings and synergies materialise.
Once the deal closes in the fourth quarter of 2025, CoreWeave will hold more real estate and power capacity than before. The extra gigawatt of growth allows it can expand without worrying about new leases.
Regulators and shareholders now have to sign off on the plan. If all goes well, CoreWeave will be in a stronger position to meet the rising demand for AI‑driven computing.
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