CoreWeave Buys Core Scientific for $9 Billion in All-Stock Deal to Power AI Expansion

Artificial intelligence cloud infrastructure company CoreWeave (CRWV) announced Monday that it will acquire data center operator Core Scientific (CORZ) in an all-stock deal valued at approximately $9 billion. The acquisition, expected to close in Q4 2025, is aimed at securing long-term access to critical power infrastructure for AI workloads, as demand for high-performance computing (HPC) infrastructure continues to skyrocket.

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Under the terms of the agreement,

This deal marks a major step in CoreWeave’s vertical integration strategy, giving it direct ownership of over 1.3 gigawatts of gross power capacity—including 840 MW already contracted through CoreWeave’s existing leases with Core Scientific—plus additional runway for another gigawatt of expansion. CoreWeave says this will eliminate over $10 billion in future lease obligations, reduce its cost base, and give the company long-term control over power and real estate infrastructure.

CEO Michael Intrator emphasized the strategic nature of the deal, stating: “Verticalizing Core Scientific’s infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion.” In an investor presentation, CoreWeave also argued that the move would be leverage-neutral and not add to the company’s debt burden.

CoreWeave has been on a meteoric rise since pivoting from its origins as an

The acquisition brings significant synergies. Core Scientific, which emerged from bankruptcy earlier this year, operates a network of power-intensive data centers built to mine

Although Core Scientific had rejected a prior $1 billion offer from CoreWeave in 2024, citing undervaluation, the two companies deepened their partnership via 12-year contracts, including one that saw Core Scientific commit 200 MW to CoreWeave’s HPC needs. With this acquisition, CoreWeave gains full control and flexibility over that infrastructure, removing any lease uncertainty.

Importantly, the transaction gives Core Scientific shareholders less than 10% ownership of the combined company—another factor weighing on CORZ shares. Some investors fear they are being diluted or undervalued, particularly as the exchange ratio fixes their value to the volatile stock price of CoreWeave.

Nonetheless, analysts see the deal as a potential blueprint for crypto miners pivoting into AI infrastructure, a trend gaining momentum as power capacity becomes the most coveted resource in AI. Bernstein’s Gautam Chhugani noted, “This sets the bar for bitcoin miners looking to pivot to AI... CoreWeave now controls the entire 1.3 GW power footprint.”

Looking ahead, CoreWeave may choose to divest Core Scientific’s remaining crypto operations, which still accounted for 89% of its Q1 2025 revenue. But with demand for AI compute surging and energy availability tightening, the real prize lies in owning physical infrastructure that can support generative AI, large language models, and other HPC use cases.

CoreWeave’s transformation into a fully integrated AI infrastructure provider brings it closer to the hyperscalers—Amazon,

The market’s knee-jerk reaction may reflect short-term dilution fears, but the long-term impact could prove much more consequential as CoreWeave positions itself as one of the most important vertically integrated players in the AI arms race.