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CoreWeave (CRWV) Makes $9 Billion Bet on Core Scientific to Power AI Growth
CoreWeave (CRWV) Makes $9 Billion Bet on Core Scientific to Power AI Growth

Yahoo

time4 days ago

  • Business
  • Yahoo

CoreWeave (CRWV) Makes $9 Billion Bet on Core Scientific to Power AI Growth

CoreWeave, Inc. (NASDAQ:) is one of the . On July 7, CoreWeave announced that it will buy crypto miner Core Scientific in an all-stock deal valued at about $9 billion. The deal comes amid AI infrastructure firms racing to secure the energy and data center capacity needed for powering burgeoning demand. According to CoreWeave, the deal will allow the immediate elimination of more than $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years. The offer prices Core Scientific at $20.40 per share, reflecting a premium of around 66% to the stock's closing price before news related to deal talks surfaced in late June. An image of a business executive with a handshake completing a deal. Core Scientific stockholders will be receiving 0.1235 newly issued CoreWeave stock for each share they hold. 'This acquisition accelerates our strategy to deploy AI and HPC (high-performance computing) workloads at scale.' -CoreWeave CEO Michael Intrator. CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes. While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.

CRWV update: CoreWeave $9 billion data deal to buy Core Scientific sends both stocks tumbling
CRWV update: CoreWeave $9 billion data deal to buy Core Scientific sends both stocks tumbling

Yahoo

time5 days ago

  • Business
  • Yahoo

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. McDonald's big announcement is a Spicy McMuffin and the return of the Snack Wrap: Both arrive this week There's a reason your Sam's Club rotisserie chicken looks different The best leaders know how to ask the right questions. Here's a model that can help you do just that 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 cofounder 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 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. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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