CoreWeave has reopened takeover negotiations with Core Scientific, a significant partner and erstwhile crypto-mining titan, to firmly establish its leadership in the AI infrastructure space. The fact that this is the second effort to close the deal in less than a year shows how urgent it is to expand AI data centers and how closely the two companies are aligning.
CoreWeave Reignites Acquisition Talks
The Wall Street Journal and Reuters reported on June 26, 2025, that CoreWeave was once more in talks to buy Core Scientific after making an unsolicited approach in 2024. The panel of Core Scientific denied the accord, which was evaluated to be worth $1.02 billion ($5.75 per share). Arguing that it greatly undervalued the company.
But the situation is very different this time. Since Core Scientific has shifted from its troubled Bitcoin mining roots to high-performance computing hosting, its stock has increased by around 300% in the last year, making it a more desirable and complementary acquisition target for CoreWeave.
Analysts estimate the renewed proposal may value Core Scientific at about $4 billion, although the exact financial conditions of the current offer are yet unknown.
CoreWeave’s AI-Fueled Transformation
Originally founded in 2017 as a cryptocurrency mining company, CoreWeave aggressively shifted into high-performance computing (HPC) with a focus on the rapidly expanding AI and machine learning markets. The company operates clusters mostly powered by Nvidia’s H100 and A100 CPUs, and specializes in GPU-based cloud infrastructure. Tech behemoths like Microsoft, OpenAI, Google, Meta, and IBM are among its customers.
CoreWeave’s rapid ascent has been dramatic. After generating only $16 million in revenue in 2022, the company saw its earnings skyrocket to $1.9 billion by the end of 2024. It went public in March 2025 and has since seen its stock soar more than 290%, reflecting growing investor confidence in its growth trajectory and the explosive demand for AI compute.
Nvidia, CoreWeave’s primary hardware partner and chip supplier, also owns a 7% stake in the company, underscoring the ecosystem’s tight interdependencies.
CoreWeave’s Strategic Infrastructure Partnership
In early 2025, despite the rejection of the initial acquisition proposal, CoreWeave and Core Scientific announced a 12-year hosting deal. Under the consensus, Core Scientific perpetratedto providing 200 megawatts (MW) of infrastructure accommodation to host CoreWeave’s GPU clusters. Later in the year, that figure expanded by an additional 120 M, totaling around 500 MW of high-performance. Eapacity expected to be fully deployed by 2026.
A de facto dependency has been established. As a result of this deep infrastructure alignment. At a time when the supply of AI infrastructure is limited globally. CoreWeave would be securing long-term access to power, facilities, and real estate essential for GPU computation by purchasing Core Scientific.
Core Scientific runs data centers in Texas, North Carolina, Georgia, and Kentucky, among other energy-rich areas of the United States. Because of their pre-existing cooling and electrical systems, these facilities are especially valuable and make excellent choices for high-density GPU hosting.
Core Scientific Shares Surge
Core Scientific’s shares saw a major jump, rising to 33% during the day and closing 8% higher after takeover talks resumed. Investors believe the merger could bring financial and operational benefits. Analysts expect any deal to offer a price well above the $5.75 per share from 2024, likely requiring a 30-50% premium to win approval from the board and shareholders. Meanwhile, CoreWeave’s shares remained steady.
Core Scientific’s AI Pivot
One of the biggest Bitcoin mining companies in North America used to be Core Scientific. However, the business declared Chapter 11 bankruptcy in late 2022 due to falling cryptocurrency values and growing energy expenses. Following a successful reorganization and the 2024 Nasdaq relisting. Core Scientific turned its attention to AI computing. It is currently regarded as a far more stable and promising. Industry than cryptocurrency mining.
Its $580 million first-quarter revenue in 2025 showed both a stronger bank sheet and increasing demand for high-performance infrastructure leasing. For a company like CoreWeave, which needs both energy access and real space to rapidly increase its AI capabilities, its metamorphosis makes it a perfect acquisition target.
CoreWeave’s Strategic Vertical Integration
Purchasing Core Scientific is more than just a calculated real estate move for CoreWeave; it is a vertical integration move that would consolidate functions, hosting, and power under one roof. Further, the accord will dwindle CoreWeave’s healthy dependence on Microsoft, which generated more than 70% of its Q1 2025 revenue. Its position in future talks with hyperscalers and enterprises. Clients may be strengthened by diversifying their client base. Infrastructure and gaining more control over hosting capacity.
The transaction may enable Core Scientific to raise capital, secure long-term revenue, and provide stockholders with upside exposure in the rapidly expanding AI sector.
Crypto Mining Meets AI
Data center operators, energy-rich cryptocurrency miners, and GPU cloud providers are increasingly interacting as a result of the AI infrastructure race, which has increased M&A activity. Power-rich mining companies are becoming desirable targets for AI builders due to the overwhelming demand for electricity and data center real estate.
To capitalize on the AI trend, other miners have also investigated or used data center repurposing, such as Hut 8 and Riot Platforms. If completed, the CoreWeave-Core Scientific agreement could establish a standard for how AI-native businesses can grow rapidly by acquiring underutilized, powerful buildings originally constructed for cryptocurrency.
Challenges and Deal Uncertainties
Despite strategic advantages, challenges remain, including regulatory scrutiny over power use and AI concentration, risks from integrating large infrastructure companies, and unknown deal terms like payment method. The outcome may depend on Core Scientific’s valuation, competing bids, and shareholder approval.
Final Thoughts
The CoreWeave-Core Scientific deal exemplifies AI infrastructure’s critical growth, repurposing crypto assets, and vertical integration, key to scaling GPU capacity amid regulatory and operational challenges in the evolving AI landscape.
