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CoreWeave moves to own Its own Infrastructure with $9 Billion Acquisition of Core Scientific

  • Writer: Niv Nissenson
    Niv Nissenson
  • Jul 7
  • 2 min read
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In a bold step to secure and vertically integrate its AI infrastructure, CoreWeave (Nasdaq: CRWV) announced it will acquire data center operator Core Scientific (Nasdaq: CORZ) in an all-stock deal valuing Core Scientific at roughly $9 billion - according to a press release. Core Scientific was launched as a Crypto mining focused company in 2017 and the pivoted to AI. This marks an aggressive move by CoreWeave, the self-styled “AI Hyperscaler™,” following its IPO earlier this year and meteoric 300% rise in stock price in just 4 months!.


The merger agreement gives Core Scientific shareholders 0.1235 shares of CoreWeave stock for each CORZ share, representing a 66% premium over Core Scientific’s pre-announcement share price. Once completed—expected in Q4 2025—CoreWeave will control around 1.3 GW of gross power capacity with another 1 GW+ available for expansion, solidifying its position as one of the largest AI-focused infrastructure players.


Why CoreWeave Wants Core Scientific

CoreWeave’s management highlighted several strategic benefits of bringing Core Scientific’s facilities fully in-house:

  • Cost savings: Eliminating over $10 billion in future lease overhead and adding an estimated $500 million in annual run-rate savings by 2027.

  • Capital flexibility: Easier access to infrastructure financing, lowering its blended cost of capital.

  • Secured power footprint: Direct control over critical power capacity to meet growing AI workload demands.

  • Broadened capabilities: Core Scientific’s expertise in site development and management complements CoreWeave’s focus on power procurement and high-performance computing (HPC) operations.


CoreWeave CEO Michael Intrator framed the move as a way to “significantly enhance operating efficiency and de-risk our future expansion,” while Core Scientific CEO Adam Sullivan said the combined company would accelerate AI infrastructure deployment.


However, the initial market responded with skepticism. CoreWeave shares fell about 4%, while Core Scientific shares dropped roughly 14% after the announcement—suggesting investors are weighing dilution concerns and near-term execution risks against the long-term strategic benefits.


This deal underscores one of the biggest secondary booms of the AI era: infrastructure. From CoreWeave’s aggressive build-outs to European expansions by players like AiOnX, demand for data center power is exploding. As we’ve pointed out in other pieces, this mirrors the classic “picks and shovels” dynamic—many of the safest bets in tech booms aren’t necessarily the front-end applications, but the infrastructure that makes them possible.


Stock Disclosure

This article discusses publicly traded companies. Nothing herein constitutes investment advice. Always conduct your own due diligence or consult with a qualified financial advisor.

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