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19h ago

CoreWeave’s Acquisition Talks Send Core Scientific Shares Soaring

The cloud infrastructure provider is negotiating to buy its long-time partner in the coming weeks, building on a $10 billion, 12-year hosting deal as AI workloads drive demand for data-center capacity.

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Overview

  • CoreWeave has reentered talks to acquire Core Scientific after an unsolicited $5.75 per share offer was rejected in June 2024.
  • News of the renewed discussions propelled Core Scientific’s stock up 33%, lifting its market capitalization to about $4.87 billion.
  • If completed soon, the transaction would deepen a partnership that includes $10 billion in 12-year infrastructure contracts for AI hosting.
  • Morgan Stanley analysts estimate the acquisition could add roughly $2.8 billion to Core Scientific’s market value based on existing profit margins.
  • Core Scientific earns a 75%–80% profit margin on its hosting contract with CoreWeave, highlighting its pivot from bitcoin mining to AI infrastructure.