CoreWeave and Core Scientific, a leading data center infrastructure provider, announced that they have signed a definitive agreement under which CoreWeave will buy Core Scientific in an all-stock transaction. This deal is valued at about $9 billion.
According to the merger agreement, stockholders of Core Scientific will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock, based on a fixed exchange ratio.
Following CoreWeave’s successful IPO in March 2025, this deal will allow CoreWeave to enhance its data center operations, ensuring steady revenue growth and improving profitability. Through this acquisition, CoreWeave will gain approximately 1.3 GW of gross power from Core Scientific’s national data center network, with an additional 1 GW or more available for potential expansion.
Deal rationale:
This is the rationale for the deal:
1.) CoreWeave expects to generate significant cost savings through streamlining business operations and eliminating lease overhead.
2.) CoreWeave can pursue infrastructure financing strategies to finance committed capital expenditures, reducing its overall cost of capital.
3.) CoreWeave will gain greater control over a critical power footprint and optionality for future power capacity.
4.) Core Scientific’s data center development capabilities complement and augment CoreWeave’s extensive expertise in power procurement, construction, and site management for infrastructure assets.
The deal is expected to close in the fourth quarter of 2025, pending customary closing conditions, including regulatory approval and approval from Core Scientific’s stockholders.
Once the deal is finalized, CoreWeave anticipates that Core Scientific’s stockholders will own less than 10% of the combined company. This transaction will immediately eliminate over $10 billion in cumulative future lease expenses related to existing contractual sites over the next 12 years.
In addition to eliminating lease expenses, this deal is projected to generate an estimated $500 million in annual run-rate cost savings by the end of 2027 through a streamlined operational focus. There is also potential to repurpose some assets for high-performance computing (HPC) usage or to divest from the cryptocurrency mining business over the medium term.
Advisors: Goldman Sachs is acting as financial advisor, and Davis Polk & Wardwell and Kirkland & Ellis are acting as legal counsel to CoreWeave. Moelis and PJT Partners are acting as financial advisors, and Wachtell Lipton Rosen & Katz is acting as legal counsel to Core Scientific.
KEY QUOTES:
“This acquisition accelerates our strategy to deploy AI and HPC workloads at scale. Verticalizing the ownership of Core Scientific’s high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory. Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI’s full potential.”
Michael Intrator, CoreWeave’s Chief Executive Officer, Chairman of the Board, and co-founder
“As our longstanding partner, CoreWeave has experienced firsthand the operational excellence we deliver and the value of the services we provide. Together with CoreWeave, we will be well-positioned to accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for our shareholders, who will be able to participate in the tremendous upside potential of the combined company.”
Adam Sullivan, President and Chief Executive Officer of Core Scientific
