AI cloud firm CoreWeave is set to acquire Core Scientific, a data center developer, in an ambitious $9 billion all-stock deal. The acquisition will provide CoreWeave with approximately 1.3 GW of power capacity across Core Scientific’s national footprint, with an additional 1 GW available for future expansion. This significant move is expected to finalize in the fourth quarter of 2025, contingent upon regulatory and shareholder approvals.
Core Scientific, which operates in states such as North Dakota, Georgia, and Texas, will bolster CoreWeave’s ability to deploy AI and high-performance computing workloads on a larger scale. Michael Intrator, CoreWeave’s chairman, stated that owning Core Scientific’s data center infrastructure offers enhanced operational efficiency and customer support.
The acquisition is projected to save $500 million annually in cost efficiencies and remove $10 billion of future lease overheads. By owning the infrastructure, CoreWeave can pursue better financing strategies, reducing overall costs. They also gain strategic control over crucial power capacity, crucial for AI advancements.
Interestingly, CoreWeave plans to repurpose or divest the crypto mining capabilities of Core Scientific for high-performance computing applications. This shift from crypto to AI could accentuate their focus on AI infrastructure growth.
Upon completion of the deal, Core Scientific shareholders will receive 0.1235 new shares of CoreWeave Class A common stock for each of their shares. Consequently, their shares will constitute less than 10% of the merged entity.
Previously, CoreWeave attempted to purchase Core Scientific in June 2024 with a $1 billion proposal. At the time, Core Scientific declined the offer, arguing it undervalued the company. In March, CoreWeave also entered a strategic agreement with OpenAI, valued up to $11.9 billion, to enhance OpenAI’s compute capabilities.