AI infrastructure firm targets energy assets
CoreWeave has agreed to acquire data center operator Core Scientific in an all-stock deal valued at approximately $9 billion, aiming to fast-track its expansion into AI and high-performance computing (HPC). The transaction reflects the growing trend of AI firms acquiring large-scale, energy-intensive infrastructure.
The deal values Core Scientific at $20.40 per share, a 66% premium from late June, when reports of merger talks first surfaced. Core Scientific stockholders will receive 0.1235 shares of newly issued CoreWeave stock for each share they own. The transaction is expected to close in Q4 2025, with the final valuation to be determined at that time.
AI’s power hunger fuels deal strategy
“This acquisition accelerates our strategy to deploy AI and HPC workloads at scale,” said CoreWeave CEO Michael Intrator. According to the company, the merger will immediately eliminate over $10 billion in lease obligations tied to data center contracts over the next 12 years.
Core Scientific brings 1.3 GW of contracted and future energy capacity, a critical asset as power becomes the defining constraint in AI data center growth. Analyst Gautam Chhugani of Bernstein noted that the transaction “sets the bar” for large-scale energy operators looking to pivot toward AI infrastructure.
Industry shift toward AI-ready infrastructure
The merger highlights a broader transformation in the sector. CoreWeave, which previously operated in other high-compute markets, has shifted fully toward providing data center access and Nvidia-powered AI chips, with revenues growing more than eight-fold last year.
Core Scientific, once focused on other compute-intensive operations, filed for bankruptcy in late 2022 due to rising energy costs. It emerged in early 2024 and began diversifying into AI services. In June, it signed a 12-year deal with CoreWeave to provide 200 MW of power infrastructure. That agreement has now evolved into a full acquisition.
Wall Street weighs in
Core Scientific shares dropped 22% following the announcement, while CoreWeave’s stock slipped 4.5%. Despite the market reaction, the strategic rationale appears strong as both companies position themselves at the center of the AI infrastructure race.
CoreWeave, with a current market valuation of $79 billion, is backed by Nvidia and supported by Goldman Sachs in this transaction. Moelis and PJT Partners are advising Core Scientific.
