Cloud infrastructure provider Coreweave announced on Monday an all-stock acquisition of data center operator Core Scientific in a transaction valued at approximately $9 billion. The deal is expected to close in the fourth quarter of 2025.
Deal Details: $20.40 Per Share, 66% Premium
Under the terms, Core Scientific stockholders will receive 0.1235 shares of Coreweave Class A common stock for each share they own. Based on Coreweave's closing price of $165.18 on July 3, 2025, this implies a value of $20.40 per Core Scientific share, representing a 66% premium to Core Scientific's unaffected share price on June 25. Post-closing, Core Scientific stockholders will own less than 10% of the combined company.
Infrastructure Integration: 1.3 GW Power Capacity and Expansion Potential
Coreweave stated that the acquisition enables it to directly own Core Scientific's infrastructure, including approximately 1.3 gigawatts of gross power capacity across U.S. data centers, plus over 1 gigawatt of potential expansion capacity. The company expects to eliminate more than $10 billion in cumulative future lease payments over the next 12 years.
Financial Outlook and Strategic Implications
Coreweave CEO Michael Intrator noted that owning the infrastructure would enhance operational efficiency and reduce expansion risks. Core Scientific CEO Adam Sullivan highlighted the combined company's potential to accelerate AI infrastructure availability. Financially, Coreweave expects the deal to be leverage-neutral and generate $500 million in annual cost savings by late 2027. It also opens access to more favorable infrastructure financing. Coreweave noted the potential to repurpose or divest Core Scientific's cryptocurrency mining operations.
The acquisition represents a major consolidation in the cloud and AI infrastructure sector. As demand for AI compute surges, owning data centers and power resources is becoming a key competitive advantage. By acquiring Core Scientific, Coreweave not only gains substantial power infrastructure but also significantly reduces long-term lease costs, strengthening its position in the AI cloud services market.
Notably, Core Scientific has long focused on Bitcoin mining hosting and self-mining, but amid the AI wave, many mining facilities are accelerating their transformation into AI data centers. This deal could accelerate that trend and potentially trigger more similar consolidation cases.