Core Scientific Rejects $9B Deal as AI Hype Spurs Bigger Ambitions

Core Scientific investors reject acquisition amid rising AI valuations, as CoreWeave pivots to developer tools with Marimo buy.

CoreWeave’s $9B Deal Crumbles Under AI Mania

A high-profile $9 billion all-stock acquisition between CoreWeave and Core Scientific has collapsed after Core Scientific shareholders voted against the deal.

• The rejection followed a “vote no” recommendation from Sina Toussi, founder of Two Seas Capital and Core Scientific’s largest shareholder.
• Toussi argued that Core Scientific could match CoreWeave’s AI trajectory independently, especially amid skyrocketing valuations in AI infrastructure.

The decision reflects a growing sentiment in capital markets: AI companies may be worth more as standalone plays, not as acquisition targets.

The Backstory: From Crypto Mining to AI Compute

Both companies share crypto mining origins, but their trajectories diverged:

• Core Scientific emerged from bankruptcy in January 2024 and still mines cryptocurrency while building AI infrastructure capacity.
• CoreWeave, backed by Nvidia, successfully pivoted to become an AI data center provider, riding the wave of demand for compute power.

CoreWeave’s stock has soared since its IPO, climbing from a $14 billion valuation to $66 billion, fueled by its positioning in the AI gold rush.

Shareholder Logic: Why Settle for $16.40/Share?

The now-rejected acquisition offered a premium—$16.40 per share—over Core Scientific’s market value at the time. But shareholders weren’t convinced.

• Toussi argued the AI investment surge since July has significantly increased peer valuations.
• “Why vote for a low-ball offer?” he wrote, emphasizing Core Scientific’s future upside as a standalone AI player.

Following the failed deal, Core Scientific’s stock jumped, pushing its market cap to $6.6 billion, suggesting investors see stronger future gains without the acquisition.

CoreWeave Moves On — Acquires Python Notebook Startup Marimo

Just hours after the deal collapsed, CoreWeave pivoted—acquiring Marimo, a startup building a modern alternative to Jupyter Notebooks.

• Marimo specializes in interactive Python notebooks—blending code, text, and media in a shareable interface.
• The tool is used in data science and AI development, helping CoreWeave move “up the stack” from infrastructure to developer tools.
• While terms were undisclosed, PitchBook estimates Marimo raised $5 million before the buyout.

This acquisition suggests CoreWeave is broadening its AI platform strategy, extending from hardware to software used by developers building AI apps.

Bigger Picture: AI Valuations Fuel Market FOMO

This episode illustrates two key dynamics shaping the AI industry today:

1. Investors believe AI infrastructure is still undervalued, especially when compared to the explosive growth of companies like CoreWeave.
2. Strategic acquirers like CoreWeave are now racing to secure tools, platforms, and talent to dominate not just AI hosting—but also AI development.

With massive deals (like OpenAI’s $30B-per-year deal with Oracle) becoming more common, shareholders are betting on long-term valuations, even at the risk of short-term volatility.

CoreWeave’s $9B acquisition of Core Scientific fell apart after shareholders, led by activist investor Sina Toussi, rejected the offer, citing rising AI valuations. CoreWeave quickly pivoted, acquiring notebook startup Marimo to expand into AI developer tools. The episode underscores soaring confidence—and caution—in an increasingly frothy AI market.