CoreWeave Doubles Down On AI Ambitions With Power-Heavy Core Scientific Merger

CoreWeave Inc. (CRWV) announced on Monday that it has agreed to purchase Core Scientific Inc. (CORZ), a data center infrastructure company, through an all-stock merger. 

Following the news, CoreWeave stock traded 5% lower on Monday after the opening bell. Meanwhile, Core Scientific’s stock crashed more than 22% in morning trade. 

Under the deal, longtime Core Scientific shareholders will receive 0.1235 newly issued Class A shares of CoreWeave for each share they own. 

This exchange ratio is fixed and reflects CoreWeave’s July 3 closing share price of $20.40, valuing Core Scientific at nearly $9 billion on a fully diluted basis. 

CoreWeave entered public markets in March 2025 and views this acquisition as a means to increase vertical integration. 

By absorbing approximately 1.3 gigawatts (GW) of existing power capacity and unlocking an additional 1 GW for future deployment, the company aims to secure its infrastructure and fortify profitability.

“This acquisition accelerates our strategy to deploy AI and HPC workloads at scale,” said CoreWeave CEO, Chairman of the Board, and co-founder Michael Intrator.

In 2024, CoreWeave put forward an offer to purchase Core Scientific for $5.75 per share, assigning the company a valuation slightly above $1 billion.

Core Scientific turned down the proposal, citing concerns that the bid undervalued the company. 

Through the acquisition deal now, CoreWeave forecasts immediate savings by eliminating over $10 billion in lease obligations scheduled over the next 12 years. 

By acquiring Core Scientific’s data centers, CoreWeave locks in cost efficiencies while giving itself more flexibility in funding capital projects, improving its cost of capital. 

They also project $500 million in annual run‑rate cost savings by end‑2027 and may repurpose facilities toward HPC (high-performance computing) or exit crypto mining in the medium term.

CoreWeave held $1.27 billion in cash and equivalents as of March 31.

The transaction is expected to close in the fourth quarter (Q4) of 2025. Upon completion, Core Scientific’s former shareholders will hold less than 10% of the merged enterprise.

CoreWeave stock has more than quadrupled since its March listing.

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