AI hyperscaler CoreWeave (NASDAQ: CRWV) has reached a definitive agreement to acquire Core Scientific (NASDAQ: CORZ), a provider of high-performance data center infrastructure. The all-stock transaction is designed to support CoreWeave’s vertical integration strategy, allowing it to internalize key infrastructure capabilities while improving cost structure and long-term scalability.
The acquisition comes just months after CoreWeave’s successful initial public offering in March 2025 and is expected to materially transform the company’s operational footprint. According to the agreement, Core Scientific shareholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock they hold.
Based on CoreWeave’s five-day volume-weighted average price as of July 3, 2025, this equates to an approximate equity valuation of $9.0 billion on a fully diluted basis.
The transaction, subject to regulatory approval and shareholder consent, is expected to close in the fourth quarter of 2025. Upon completion, Core Scientific’s shareholders will hold less than 10% of the combined entity.
CoreWeave’s CEO, Michael Intrator, emphasized that the acquisition aligns tightly with the company’s roadmap for AI and high-performance computing (HPC) workload deployment at scale. “Verticalizing our infrastructure stack allows us to optimize our economics and reduce the risks associated with future expansion,” said Intrator. “By owning and operating Core Scientific’s data center platform, we strengthen our ability to deliver more efficient and reliable services to our customers in the AI space.”
The acquisition will give CoreWeave access to 1.3 gigawatts (GW) of gross power capacity currently operated by Core Scientific, with an additional 1+ GW of potential expansion across the United States. This extensive power footprint is critical for supporting AI workloads, which are increasingly power-intensive and latency-sensitive.
Access to Low-Cost Capital
Adam Sullivan, President and CEO of Core Scientific, noted that CoreWeave had long recognized the company’s operational capabilities. “Our organizations have worked closely together, and CoreWeave knows firsthand the quality of our infrastructure and services,” said Mr. Sullivan. “This combination will allow us to deliver premium infrastructure for AI applications more quickly, while maximizing value for our shareholders.”
From a strategic perspective, the merger would offer several benefits to CoreWeave:
- Operational cost reduction: The deal immediately eliminates over $10 billion in lease obligations associated with Core Scientific’s existing data center contracts, which span the next 12 years.
- Financial flexibility: With increased control over its power and infrastructure assets, CoreWeave can now access lower-cost capital and financing instruments tailored to infrastructure investment.
- Expertise consolidation: Core Scientific’s strength in site development and data center construction complements CoreWeave’s capabilities in power procurement and hyperscale operations.
- Potential restructuring: While not yet confirmed, the combined company may evaluate options to repurpose or divest Core Scientific’s cryptocurrency mining assets in the medium term.
Analysts note that the acquisition strengthens CoreWeave’s positioning in the competitive AI infrastructure market, where demand is driven by large-scale training and inference workloads requiring immense compute resources and low-latency data center environments.
Looking ahead, CoreWeave anticipates $500 million in annual run-rate cost savings by the end of 2027, achieved through consolidation efficiencies, lease eliminations, and improved infrastructure control.
The merger signals a broader trend of AI infrastructure providers seeking to tighten control over their core operations. As enterprise and institutional AI adoption accelerates, players like CoreWeave are investing heavily in scale, flexibility, and vertical integration to maintain performance, cost, and resilience advantages.
