CRWV update: CoreWeave $9 billion data deal to buy Core Scientific sends both stocks tumbling
AI cloud computing giant CoreWeave announced on Monday it has signed a deal to acquire Core Scientific, a data center provider, in an all-stock deal valued at $9 billion.
The news sent share of both companies tumbling in early trading on Monday, with CoreWeave (NASDAQ: CRWV) slightly recovering by midday, down almost 3%, while Core Scientific (NASDAQ:CORZ) remained in the red, down a staggering 16%. However, Core Scientific stock is still up about 25% since the deal was first reported by the Wall Street Journal last month, as noted by Investopedia.
The deal, which is expected to close by the fourth quarter of 2025—subject to both regulatory approval, and approval from Core Scientific’s stockholders—will enable CoreWeave to bring Core Scientific’s nationwide data center infrastructure in-house, so it can support large-scale artificial intelligence development as it races to compete in the AI boom.
“This acquisition accelerates our strategy to deploy AI and HPC workloads at scale,” CoreWeave’s CEO and co-founder Michael Intrator said in a statement. “Verticalizing the ownership of Core Scientific’s high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory. Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI’s full potential.”
Both companies have a history of working together, and the deal follows a previous merger bid last year, which Core Scientific rejected on the grounds it was too low, per the Journal.
The deal is forecast to save CoreWeave some $10 billion in future leasing contract costs from Core Scientific, according to Yahoo Finance.
CoreWeave and Core Scientific by the numbers
CoreWeave went public this past March in a highly anticipated initial public offering, which CNBC called the biggest venture-backed IPO for a U.S. company since 2021, following a long lapse of tech IPOs. In its March prospectus filing, the company, whose largest customer is Microsoft, reported a net loss of $863 million, with revenue growth of 737% last year to $1.92 billion. It has a market capitalization of $76.73 billion.
Core Scientific reported earnings for the first quarter of 2025 totaling $79.53 million in quarterly revenue, which fell short of analyst estimates of $92.04 million, although its earnings per share (EPS) of -$0.10 beat the street’s estimates of -$0.12. It has a market capitalization of $4.46 billion.