CoreWeave acquires data center provider Core Scientific in $9B stock deal

In a landmark move set to significantly bolster its position in the rapidly expanding artificial intelligence infrastructure market, cloud computing powerhouse CoreWeave announced on Monday a definitive agreement to acquire Core Scientific, a prominent data center infrastructure provider. The all-stock transaction is valued at an estimated $9 billion, signaling a major investment in the future of AI computation.

As a direct result of this strategic acquisition, CoreWeave is poised to gain access to an impressive more than one gigawatt of data center capacity. This substantial addition is equivalent to the energy required to power over 850,000 homes, according to information from Carbon Collective. This immense computational power will be primarily dedicated to fulfilling the escalating demands of AI training and inference workloads. Notably, Core Scientific, which previously focused on Bitcoin mining services, will now pivot its extensive GPU infrastructure to power and train advanced generative AI models, aligning perfectly with CoreWeave’s core business.

This transformative deal underscores a critical and accelerating trend across the tech industry: the intense race among cloud infrastructure providers to rapidly expand their data center footprints. The seemingly insatiable computational demands of cutting-edge AI companies are driving unprecedented investment in robust and scalable infrastructure. This high-stakes competition was further highlighted recently when Bloomberg reported that OpenAI, a leading AI research organization, secured a massive deal with Oracle to lease an additional 4.5 gigawatts’ worth of data center capacity. This agreement significantly expands upon the two companies’ already monumental Stargate infrastructure deal, illustrating the sheer scale of resources being deployed to keep pace with AI’s rapid advancements.