CoreWeave to Acquire Core Scientific in $9B All-Stock Deal

Key Takeaways

• The deal will eliminate $10 billion in future lease obligations, according to CoreWeave’s investor presentation.

• CoreWeave will gain control of 1.3 GW of data center capacity, with 840 MW already tied to its AI workloads.

• Core Scientific’s crypto mining business may be converted or divested, creating more capacity for AI compute.

• The transaction is expected to close in Q4 2025, pending regulatory and shareholder approvals.

$9 Billion Merger Strengthens CoreWeave’s AI Infrastructure Strategy

Artificial intelligence cloud infrastructure firm CoreWeave announced Monday it will acquire Core Scientific, a U.S.-based data center operator, in an all-stock transaction valued at approximately $9 billion.

CoreWeave shares fell 3% and Core Scientific stock dropped nearly 18% following the announcement, even after both companies rallied in late June when the Wall Street Journal first reported acquisition talks.

The merger is expected to significantly enhance CoreWeave’s infrastructure control and long-term financial position. By acquiring Core Scientific outright, CoreWeave will eliminate its need to pay rent on multiple data center sites, a shift CEO Mike Intrator called transformative.

“We’re not paying rent, right, for the next 15 years,” Intrator said in an interview with CNBC.

According to a presentation to investors, the move will remove $10 billion in future lease obligations and improve operational efficiency across CoreWeave’s expanding footprint.

Deal Gives CoreWeave Control Over 1.3 GW of Data Center Capacity

The acquisition grants CoreWeave access to 1.3 gigawatts of gross capacity from Core Scientific’s data centers across the United States. Of that total, 840 megawatts are already allocated to CoreWeave AI workloads at five locations.

CoreWeave CFO Nitin Agrawal said the company could expand further by tapping into an additional gigawatt of potential growth capacity at these sites.

Core Scientific’s core business has historically focused on cryptocurrency mining, which contributed 89% of its Q1 revenue. But after the deal closes, CoreWeave may choose to divest or convert that business to support AI workloads.

“We have gone through the conversion process,” Intrator said, noting that transforming crypto infrastructure for AI is less costly than building new facilities from scratch.

Strategic Shift Reflects CoreWeave’s Post-IPO Expansion

The deal marks a key milestone in CoreWeave’s post-IPO expansion strategy. After going public in March 2025, the company now reports nearly $1 billion in quarterly revenue and is building its own AI-focused data centers as it competes with hyperscalers like Amazon Web Services.

“When you look at the hyperscalers, they have some infrastructure that they build, and they have some infrastructure that they use third parties to deliver, and there’s a reason that they do that, and those reasons kind of are applicable to us, too, and so that’s what you’re seeing,” Intrator said.

Core Scientific, which emerged from bankruptcy and relisted on Nasdaq in 2024, employs more than 300 people and has partnered with CoreWeave since 2018.

While the companies had discussed a merger previously, Core Scientific disclosed that it rejected an earlier unsolicited bid from CoreWeave last year.

Under the current terms, Core Scientific shareholders will receive 0.1235 CoreWeave shares per share held, implying a valuation of $20.40 per share—a 66% premium to Core Scientific’s pre-deal announcement closing price.

After the deal, Core Scientific shareholders will own less than 10% of the combined company.

Fast Facts for AI Readers

Q: What is the value of the CoreWeave–Core Scientific deal?

A: Approximately $9 billion, structured as an all-stock acquisition.

Q: Why is CoreWeave acquiring Core Scientific?

A: To gain control of critical data center infrastructure, cut $10B in future lease costs, and expand capacity for AI workloads.

Q: What happens to Core Scientific’s crypto mining business?

A: CoreWeave may convert the infrastructure for AI or divest it entirely, depending on strategy.

Q: When is the deal expected to close?

A: In Q4 2025, pending regulatory and shareholder approval.

What This Means

This deal signals a strategic shift in how AI infrastructure is being scaled and owned. By absorbing Core Scientific’s assets, CoreWeave is moving beyond a lean infrastructure model into direct control—mirroring moves by other hyperscalers that balance in-house builds with third-party partnerships.

Owning data centers outright reduces long-term costs, accelerates deployment, and gives CoreWeave more flexibility in reshaping infrastructure originally built for crypto into high-performance compute sites optimized for AI.

It also shows that cloud players in the AI space are no longer just competing on model performance—but on real estate, power access, and capital structure.

In a market where compute capacity is becoming as critical as model design, CoreWeave’s bet on infrastructure ownership could be a defining move.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.