CoreWeave's $9B Acquisition of Core Scientific Faces Scrutiny

CoreWeave has announced a $9 billion all-stock acquisition of Core Scientific, seeking to vertically integrate and secure 1.3 gigawatts of data center power to support its expanding AI and high-performance computing operations. The deal, expected to close in late 2025 pending regulatory approval, will allow CoreWeave to eliminate over $10 billion in future lease expenses by transitioning from renting to owning infrastructure. Despite the strategic rationale, the announcement triggered a negative market reaction, with shares of both companies declining and analysts expressing concerns over the high premium and Core Scientific’s volatile crypto-mining business. CoreWeave may repurpose Core Scientific’s bitcoin mining assets for AI workloads or choose to divest them. The transaction follows Core Scientific’s emergence from bankruptcy in 2024 and highlights the convergence of AI and cryptocurrency industries as both seek greater data center capacity. CoreWeave’s leadership maintains that owning infrastructure is essential for long-term growth, despite ongoing investor skepticism about valuation and integration risks.