CoreWeave Revives Acquisition Talks With Core Scientific Amid AI Infrastructure Race
Surging AI Demand Drives Renewed Bid for Bitcoin Mining Giant
Second Attempt at a Strategic Buyout
CoreWeave, the AI cloud infrastructure provider backed by Nvidia and powering major clients like OpenAI and Microsoft, has re-entered negotiations to acquire Bitcoin miner Core Scientific.
- Nearly a year ago, CoreWeave’s initial $1 billion offer was rejected by Core Scientific’s board as “significantly undervaluing” the company.
- This time, while the offer terms remain undisclosed, news of the talks sent Core Scientific’s stock soaring 28%, raising its valuation to nearly $4 billion.
Why CoreWeave Wants Core Scientific
CoreWeave’s renewed interest is driven by the urgent need to secure scalable infrastructure for AI workloads.
- After a $1.5 billion IPO and forming high-profile partnerships, CoreWeave faces fierce competition with Amazon Web Services and Google Cloud for computing power.
- Unlike these tech giants, CoreWeave lacks a vast network of data centers. Core Scientific’s facilities, built for high-density Bitcoin mining and located near affordable power sources, offer a strategic shortcut.
Deepening Collaboration and Energy Access
The two companies already have a strong working relationship, including a 200-megawatt contract supporting CoreWeave’s high-performance computing services.
- Acquiring Core Scientific would provide CoreWeave with direct control over power contracts and data center capacity, critical assets in today’s AI expansion bottleneck.
- Energy infrastructure, not just computing hardware, has become the most valuable asset in this sector.
Core Scientific’s Strategic Position
For Core Scientific, the timing of the talks is pivotal.
- The company exited bankruptcy in early 2024 with a leaner operation and improved balance sheet.
- However, Bitcoin’s April halving cut mining rewards, squeezing margins across the industry.
- Instead of following peers in selling assets or gradually pivoting to AI hosting, Core Scientific has maintained a strategic stance, demonstrated by a first-quarter profit of $580 million.
Industry Realignment: Power is the True Prize
Whether this deal proceeds or falls through, CoreWeave’s return to the table reflects a broader shift in digital infrastructure.
- The lines between Bitcoin mining and AI computing are blurring, not due to technological convergence, but because both industries depend on reliable, cheap power.
- In this landscape, Core Scientific’s real value lies in its grid connections, which are increasingly scarce and highly sought after for next-generation AI operations.
