The start of a new era
CoreWeave, a leading player in the AI cloud infrastructure space, didn’t make this acquisition by chance. Since its IPO in March 2025, which has already seen its share price quadruple, the company has increasingly focused on long-term sustainability and operational efficiency. Acquiring Core Scientific is a clear step in that direction, giving CoreWeave full control over the infrastructure it already actively uses.
Core Scientific is far from a stranger to CoreWeave. The two companies have been working together since 2018. Although Core Scientific filed for bankruptcy in 2024 and was subsequently relisted on Nasdaq, it still owns an impressive network of data centers with a gross capacity of 1.3 GW and an additional 1 GW reserved for future growth. Of that capacity, 840 MW is already dedicated to CoreWeave, spread across five strategic U.S. locations.
Eliminating costs and redefining the future
One of the key drivers behind this deal is eliminating leasing costs. CoreWeave expects to save around $10 billion over the next 15 years by owning its data centers. At the same time, it gains far greater flexibility. Rather than building new AI-focused centers, it can efficiently convert Core Scientific’s existing cryptocurrency mining operations.
This transformation is already underway in partnership with Galaxy Digital, giving CoreWeave a clear advantage – conversion is far cheaper than new construction. At a time when investors are rapidly shifting capital toward AI infrastructure and infrastructure funds, this approach presents a compelling competitive edge.
From the perspective of Core Scientific shareholders, this is a lucrative offer, each share will be converted into 0.1235 shares of CoreWeave, implying a valuation of $20.40 per share, about 66% above the price before the deal talks were announced. Once the deal is finalized, Core Scientific shareholders will own less than 10% of the new entity, but they’ll gain access to a bold AI expansion strategy.[1]
A market-shifting move
Although the market’s initial reaction was muted, CoreWeave shares fell 3–5%, and Core Scientific dropped nearly 18%, the long-term implications are significant.* This acquisition opens the door for CoreWeave to strengthen its position as a dominant force in AI infrastructure.
The company is now generating nearly $1 billion in quarterly revenue, though it carries an average interest rate of 10.1% on short-term debt. Acquiring Core Scientific means not only gaining control over strategic assets but also creating a pathway to reduce capital costs – key to supporting future growth.
A future driven by AI
The acquisition is expected to close in Q4 2025. In the meantime, CoreWeave isn’t standing still. It’s already planning new in-house data centers that will compete directly with giants like Amazon’s AWS. This hybrid model could provide a level of scalability and efficiency that competitors will struggle to match, something that will likely be reflected in the company’s stock price moving forward, giving investors a rare chance to participate in the next phase of AI evolution.[2]
* Past performance is no guarantee of future results.
[2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
Sources:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1839341/000162828025023242/core-20250331.htm
https://www.cnbc.com/2025/03/30/coreweaves-7-year-journey-to-ipo-wound-through-crypto-before-ai.html
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