In one of the most ambitious infrastructure deals of the year, AI cloud computing company CoreWeave (CRWV) announced it will acquire data center operator Core Scientific (CORZ).
The acquisition will be executed through an all-stock deal valued at $9 billion. The transaction, expected to close in the fourth quarter of 2025, aims to dramatically scale CoreWeave’s ability to meet the explosive demand for AI and high-performance computing (HPC) workloads.
A Strategic Merger to Cement AI Dominance
CoreWeave’s acquisition of Core Scientific marks a major vertical integration move. Under the deal, Core Scientific shareholders will receive 0.1235 shares of CoreWeave for each share held, translating to a valuation of $20.40 per Core Scientific share—a 66% premium to its stock price before the deal talks surfaced.
For CoreWeave, the benefits are immediate and material. The acquisition brings 1.3 gigawatts of existing gross power capacity under its control, along with another potential gigawatt for future expansion. Of that, 840 megawatts are already leased by CoreWeave, and the rest is primarily used for crypto mining.
The strategic rationale is clear: owning the infrastructure that currently underpins its cloud services reduces CoreWeave’s reliance on third-party leases. The company expects to eliminate more than $10 billion in future lease obligations while gaining over $1.6 billion in hard assets. CEO Michael Intrator said the deal “de-risks our future expansion” and “solidifies our growth trajectory.”
CoreWeave’s Growth Story: From Ethereum Miner to AI Powerhouse
Founded in 2017 as an Ethereum-focused crypto miner, CoreWeave pivoted to AI after Ethereum’s 2022 shift away from mining. The transition proved prescient. CoreWeave now operates 33 purpose-built AI data centers and expects to quadruple its capacity to 1.6 gigawatts in the coming years.
This aggressive infrastructure buildout is fueled by stunning growth. In Q1 2025, revenue surged more than fivefold to $982 million year-over-year, while adjusted operating income jumped by over 6x to $163 million. The company recently signed a contract with OpenAI valued up to $11.9 billion and reported a 63% increase in its backlog, which now stands at nearly $26 billion.
Despite a sky-high sales multiple of 27, CoreWeave’s valuation is more digestible when compared with smaller and slower-growing AI firms trading at even loftier multiples. With a revenue target of $5 billion for 2025 and $16.6 billion by 2027, the company could still offer meaningful upside if it executes effectively.
Market Reactions and the Road Ahead
The announcement didn’t come without turbulence. CoreWeave shares fell nearly 4% on the news, while Core Scientific plunged as much as 20%—a reflection of investor uncertainty and high expectations following earlier reports of the deal. Still, analysts see the transaction as a defining moment, not just for the two companies involved but for the broader AI infrastructure landscape.
With AI data center demand projected to grow over 30% annually through 2030, according to McKinsey, securing energy capacity has become a strategic imperative. CoreWeave’s deal positions it at the heart of that arms race, while signaling to competitors that vertical integration may be the next competitive frontier.
Conclusion
CoreWeave’s $9 billion acquisition of Core Scientific is more than a bold consolidation play—it’s a strategic gamble that underscores the growing pains and promises of the AI era. By owning the infrastructure critical to its success, CoreWeave is betting big that control over power and compute capacity will define the next wave of AI leadership. As the company leans into this high-stakes transformation, the market will be watching whether it can maintain its breakneck momentum and deliver on its towering ambitions.
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