$9 Billion AI Power Grab: CoreWeave Acquires Core Scientific

In a landmark move signaling an aggressive push to dominate the artificial intelligence infrastructure landscape, specialized GPU cloud provider CoreWeave is set to acquire data center operator and bitcoin miner Core Scientific in an all-stock transaction valued at approximately $9 billion.[1][2] The deal underscores a critical trend in the technology sector: the voracious appetite for power and data center capacity fueled by the explosive growth of AI. By acquiring Core Scientific, CoreWeave is making a strategic play to vertically integrate its operations, securing a massive footprint of the essential, power-intensive real estate required to run the advanced computing chips that underpin the AI revolution.[3][4] The acquisition is poised to reshape the competitive dynamics of the AI cloud market, providing CoreWeave with greater control over its infrastructure and a significant cost advantage as it vies with established giants.

The transaction's structure involves Core Scientific stockholders receiving 0.1235 newly issued shares of CoreWeave Class A common stock for each share they hold.[5] This exchange ratio implied a value of $20.40 per Core Scientific share as of early July, representing a substantial 66% premium over the stock's price before acquisition talks were reported in late June 2025.[6][7] Upon the deal's expected closure in the fourth quarter of 2025, Core Scientific shareholders will own less than 10% of the combined entity.[5][1] This acquisition is not CoreWeave's first attempt to purchase the data center firm; a previous, lower bid was rejected in 2024.[6][2] The successful deal marks a significant turnaround for Core Scientific, which emerged from bankruptcy protection in early 2024 after struggling with the volatility of the cryptocurrency market.[2] The company had already begun a strategic pivot toward providing infrastructure for high-performance computing (HPC) and AI, a direction that this acquisition solidifies.[3][8]

The primary driver behind this multi-billion-dollar acquisition is CoreWeave's strategic imperative to secure and control its own data center infrastructure.[4] The company, which specializes in providing large-scale access to Nvidia's highly sought-after GPUs, has been rapidly expanding to meet the demands of clients like OpenAI and Microsoft.[6][9] By purchasing Core Scientific, CoreWeave gains ownership of approximately 1.3 gigawatts of power capacity across a national footprint of data centers, with the potential to expand by at least another gigawatt.[5][4] This vertical integration is expected to "de-risk" future expansion and enhance operating efficiency, according to CoreWeave CEO Michael Intrator.[3] A key financial benefit is the immediate elimination of over $10 billion in cumulative future lease payments that CoreWeave was contracted to pay Core Scientific over the next 12 years.[1][2] The company also anticipates achieving an estimated $500 million in annual run-rate cost savings by the end of 2027 through streamlined operations.[1][10]

This acquisition carries significant implications for both the burgeoning AI industry and the evolving data center market. The deal highlights a growing trend of AI companies looking beyond traditional data centers and repurposing energy-intensive sites, such as those built for bitcoin mining, to meet their power needs.[2] The insatiable demand for computing power for AI has created a supply shortage, allowing specialized providers like CoreWeave to grow at a breakneck pace.[7] By securing its own power and infrastructure, CoreWeave strengthens its position as a key "AI Hyperscaler," directly competing with the cloud divisions of Amazon, Google, and Microsoft.[4][8] The move also signifies a strategic pivot for the cryptocurrency mining industry, demonstrating how assets developed for mining can be repurposed to serve the lucrative AI market.[7][2] While Core Scientific will bring its remaining bitcoin mining operations and holdings into the deal, CoreWeave has signaled it may repurpose or divest these assets over time.[1][11] The transaction is also expected to provide the combined company with greater financing flexibility and a lower overall cost of capital for future infrastructure projects.[12][13]

In conclusion, CoreWeave's acquisition of Core Scientific is a transformative event born from the unprecedented demands of the artificial intelligence era. It is a calculated, strategic maneuver to secure the most critical and constrained resource in the AI gold rush: powered data center space. By bringing this foundational layer of the AI stack in-house, CoreWeave not only achieves significant long-term cost savings but also gains crucial control over its expansion capabilities, solidifying its trajectory as a major force in the high-performance computing market. The deal serves as a powerful indicator of the strategic convergence between the energy, data center, and AI sectors, a trend that is likely to accelerate as the computational needs of artificial intelligence continue to scale exponentially. The combined entity is positioned to be a formidable competitor, with the infrastructure to support the next wave of AI innovation.