CoreWeave Acquires Core Scientific in $9 Billion Merger to Expand AI Data Center Infrastructure

CoreWeave Inc. (NASDAQ: CRWV) shares plunged 23.8% following the disclosure of a $9 billion merger agreement with Core Scientific Inc., its primary data center landlord. The deal positions CoreWeave, a major AI cloud computing provider, to acquire Core Scientific, which operates large-scale facilities critical to CoreWeave’s infrastructure.

According to investor materials, CoreWeave aims to secure long-term control over vital computing space, reducing infrastructure costs and bolstering stability amid increasing AI demand. Despite these strategic goals, the market reacted negatively, with concerns over the high valuation, possible debt implications, and challenges in integrating Core Scientific’s operations.

The companies intend for the merged entity to retain the CoreWeave name and continue serving existing customers without immediate operational changes. Both parties expect the transaction to close after receiving regulatory and shareholder approvals.

CoreWeave has completed the acquisition of Core Scientific, marking a significant expansion for CoreWeave in the cloud computing and AI infrastructure market. This deal represents a strategic move to broaden CoreWeave's capabilities and market presence. Concurrently, CoreWeave has begun offering Nvidia's RTX PRO 6000 Blackwell GPUs at scale, which is a crucial development for the company’s technical infrastructure and ability to serve clients requiring high-performance computing resources. The RTX PRO 6000 Blackwell GPUs are notable for their advanced processing power, designed to meet the demanding needs of AI, machine learning, and rendering applications. These developments position CoreWeave as a stronger competitor in the technology sector. The acquisition is also attracting investor attention, raising questions about CRWV stock’s future performance. Industry analysts highlight the importance of monitoring CoreWeave’s integration of Core Scientific and the successful deployment of Nvidia's cutting-edge GPUs as indicators of potential growth. This move signifies CoreWeave’s commitment to scaling its cloud offerings and solidifying its standing in the AI and tech infrastructure space. Although the full financial terms of the acquisition were not detailed, the expansion reflects confidence in long-term demand for advanced cloud solutions and GPU computing power.

On July 7, 2025, CoreWeave announced its agreement to acquire Core Scientific in a $9 billion all-stock transaction, marking a significant consolidation in the AI and high-performance computing data center industry. This strategic deal is expected to close in the fourth quarter of 2025, subject to regulatory and shareholder approvals. The acquisition will substantially increase CoreWeave's infrastructure capabilities by bringing critical assets in-house, including 1.3 gigawatts of gross power capacity across Core Scientific's U.S. data center footprint, plus an additional 1 gigawatt reserved for future expansion.

Following the announcement, CoreWeave's stock dropped approximately 4%, while Core Scientific’s shares plunged around 20%, despite earlier rallies in June amid reports of deal talks. Under the terms, Core Scientific shareholders will receive 0.1235 CoreWeave shares for each share held, implying a per-share valuation of $20.40—a premium of 66% over Core Scientific’s closing stock price prior to the deal discussions. Post-merger, Core Scientific shareholders will own less than 10% of the combined entity.

CoreWeave CEO Michael Intrator emphasized that the acquisition will eliminate $10 billion of future lease obligations and enhance operating efficiency, strengthening CoreWeave's position in the competitive AI arms race. Core Scientific, which emerged from bankruptcy and relisted on Nasdaq in 2024, has increasingly focused on high-performance computing workloads. This consolidation is significant for the AI data center sector, signaling intensified competition and growth amid booming demand for AI infrastructure. The combined company is expected to leverage the expanded power and real estate assets to support advanced AI and crypto mining operations moving forward.

CoreWeave, a leading AI cloud provider known for servicing major clients including Microsoft and OpenAI, is pursuing a strategic acquisition of Core Scientific in a deal valued at approximately $9 billion. This move addresses a critical challenge for CoreWeave, which currently relies heavily on leased high-performance computing (HPC) infrastructure from Core Scientific, accounting for 59 megawatts (MW) capacity across six sites. The lease arrangement has been costly and inflexible, prompting CoreWeave to seek vertical integration to own these assets outright, which is expected to reduce long-term operational expenses by 15-20%. Core Scientific, originally focused on Bitcoin mining, has pivoted towards HPC infrastructure optimized for high-density GPU workloads, catering directly to AI computational demands. Despite a 55% year-over-year revenue decline due to the Bitcoin market downturn, Core Scientific reported a net income surge to $580 million in Q1 2025, supported by non-cash warrant adjustments, indicating strong financial resilience. The acquisition would consolidate approximately 590 MW of HPC capacity, including a key facility in Denton, Texas that is projected to expand to 260 MW by early 2026 and plays a pivotal role in CoreWeave's partnership with OpenAI, which recently committed $11.9 billion for AI compute resources. This deal not only strengthens CoreWeave’s infrastructure control, mitigating risks associated with third-party data centers such as price hikes and supply constraints, but also secures undervalued renewable energy assets that power these operations. Investors are advised to consider the strategic advantages alongside execution risks and financial commitments involved. This acquisition represents a significant evolution in the AI infrastructure landscape, promising enhanced scalability to meet the exponential growth in AI compute demand globally.