CoreWeave Pursues $4B Deal to Power AI Ambitions with Core Scientific

CoreWeave, the rapidly rising AI cloud infrastructure provider, is once again making headlines — this time for reigniting acquisition talks with bitcoin mining giant Core Scientific. According to a report by The Wall Street Journal, the companies are in advanced discussions that could lead to a deal in the coming weeks, pending negotiations.

The move marks a notable turn in a high-stakes courtship that began last year, when CoreWeave made an unsolicited offer to acquire Core Scientific for $1.02 billion. That bid, valued at $5.75 per share, was promptly rejected by Core Scientific for undervaluing the company. Fast-forward a year, and Core Scientific’s market value has climbed to nearly $4 billion, with shares rising roughly 8% following the renewed acquisition chatter.

CoreWeave’s interest in the company is strategic. As AI workloads continue to demand massive computational power and access to stable energy supplies, former crypto mining operations like Core Scientific have become increasingly attractive targets. With expansive infrastructure already in place, these facilities offer AI players a fast track to scaling data centers without starting from scratch.

CoreWeave and Core Scientific already have history. Following the failed acquisition attempt in 2024, the companies entered a multi-decade partnership involving 12-year infrastructure contracts. Among them was a landmark deal in which Core Scientific committed to providing CoreWeave with 200 megawatts of power capacity to support its high-performance computing operations. That agreement alone signaled a convergence between the worlds of cryptocurrency and artificial intelligence — both of which depend on energy-intensive server farms.

The potential acquisition now appears to be a natural next step in that partnership. By bringing Core Scientific under its umbrella, CoreWeave would not only secure long-term access to critical power infrastructure but also strengthen its foothold in the competitive AI cloud race — a space dominated by the likes of Amazon, Google, and Microsoft.

While the exact financial terms of the revived offer have not been disclosed, market analysts suggest any deal would likely exceed the previous $1 billion bid, given Core Scientific’s increased valuation and rising relevance in the post-crypto AI landscape.

Still, a finalized agreement is not guaranteed. Regulatory scrutiny, shifting market conditions, or resistance from shareholders could delay or derail the talks. Neither Core Scientific nor CoreWeave has publicly commented on the latest developments.

The acquisition would mark another significant move in a broader trend: tech and AI companies consolidating energy assets and computing infrastructure once built for cryptocurrency mining. As AI continues to evolve and expand, the race to control the digital and physical backbones of computation is heating up — and CoreWeave is positioning itself at the center.

Core Scientific Enters AI Compute Market with $3.5B Deal

In a significant development in the high-performance computing (HPC) space, Core Scientific, a leading digital infrastructure provider for bitcoin mining and hosting services, has announced a landmark deal with CoreWeave, an AI hyperscaler. The 12-year agreement will see Core Scientific deliver approximately 200 megawatts of infrastructure to host CoreWeave’s high-performance compute operations, positioning the company as a major player in the AI data center space.

This strategic move marks a significant expansion of Core Scientific’s hosting business and earnings power, while maintaining its strong bitcoin mining franchise. The deal is expected to generate over $3.5 billion in cumulative revenue for Core Scientific during the initial contract terms, with estimated average annual revenue of $290 million. This development highlights the growing importance of HPC in the tech industry and the opportunities it presents for emerging growth companies.

The Rise of High-Performance Computing

HPC is a critical component in various industries, including AI, scientific research, and cryptocurrency mining. The increasing demand for powerful computing capabilities has led to a surge in the adoption of HPC solutions. Core Scientific’s agreement with CoreWeave demonstrates the company’s commitment to meeting this growing demand and diversifying its business model.

AI Computing: A Key Driver of Growth

AI computing is a significant driver of the HPC market, with applications in various sectors, including healthcare, finance, and technology. The increasing adoption of AI solutions has led to a rise in demand for high-performance computing infrastructure. CoreWeave’s partnership with Core Scientific will enable the company to expand its AI compute capabilities, further solidifying its position in the AI hyperscale space.

Bitcoin Mining and HPC: A Synergistic Relationship

Core Scientific’s roots in bitcoin mining have provided a natural segue into HPC. The company’s existing infrastructure and expertise in high-power computing have enabled it to expand into the HPC space seamlessly. This synergistic relationship between bitcoin mining and HPC presents opportunities for companies like Core Scientific to leverage their existing infrastructure and expertise to tap into the growing HPC market.

Opportunities for Emerging Growth Companies

The HPC space presents significant opportunities for emerging growth companies. As demand for high-performance computing continues to outpace supply, companies like Core Scientific are well-positioned to meet customer needs with a much shorter time to power than greenfield data center projects. This deal demonstrates how small-cap companies can leverage their existing infrastructure and expertise to tap into the growing HPC market, providing a pathway for growth and expansion.

Investment Opportunities in the HPC Space

The HPC space offers attractive investment opportunities for investors seeking exposure to emerging growth companies. As the demand for high-performance computing continues to grow, companies like Core Scientific are poised to benefit from this trend. Investors can capitalize on this growth by investing in companies that are well-positioned to meet the increasing demand for HPC solutions.

In conclusion, Core Scientific’s strategic move into the AI compute space highlights the growing importance of HPC in the tech industry. This deal demonstrates the opportunities available for emerging growth companies in the HPC space and the potential for investors to capitalize on this growth. As the demand for high-performance computing continues to rise, companies like Core Scientific are poised to benefit from this trend, making them attractive investment opportunities for investors seeking exposure to the HPC space.