Cloud infrastructure leader CoreWeave is reportedly making a fresh bid to acquire Core Scientific, one of North America’s largest crypto-mining and data hosting companies. Sources close to the matter indicate that a deal could be finalized in the coming weeks—provided negotiations continue smoothly. While terms remain undisclosed, this move could significantly reshape the landscape of AI-aligned infrastructure.
A History of Interest—and Rejection
This isn’t CoreWeave’s first attempt. The AI cloud provider previously offered $5.75 per share to acquire Core Scientific, valuing it at just over $1 billion. That proposal was declined, with Core Scientific choosing to double down on their ongoing partnerships with CoreWeave instead.
Despite that, the two firms have maintained a strong working relationship. In June last year, they signed a series of long-term agreements, with Core Scientific committing to deliver hundreds of megawatts of power to host CoreWeave’s compute-intensive operations.
Why This Merger Makes Strategic Sense
Industry analysts are largely positive about the potential deal. According to Jefferies, merging the two companies could streamline CoreWeave’s operational costs and enable deeper control over its data center infrastructure. Jefferies has placed a target valuation of $16–$23 per share on Core Scientific if the deal goes through—well above the previous bid.
From CoreWeave’s standpoint, the acquisition could significantly expand their AI data center footprint and bolster their high-performance computing capabilities. For a company already pushing the limits of AI infrastructure, the move could enable greater agility, cost efficiency, and control.
Valuation Discrepancies Emerge
While Jefferies offers a bullish outlook, Cantor Fitzgerald believes Core Scientific could be worth even more—potentially above $30 per share, given the strategic value of its existing data center assets. Their analysis points to the long-term returns CoreWeave might gain through vertical integration and enhanced infrastructure scale.
Meanwhile, JPMorgan has taken a comparative view, highlighting Riot Platforms as a potential undervalued peer. Despite Riot holding more computing capacity in urban hubs like Austin and Dallas, it trades at a notable discount relative to Core Scientific—suggesting a market imbalance that could shift depending on the final outcome of this deal.
Sector Impact: AI + Bitcoin = Strategic Convergence
This potential acquisition underscores a broader trend in the infrastructure arms race: the fusion of AI workloads and energy-hungry crypto operations. As demand for compute surges, companies that own their own power and hardware ecosystems are becoming increasingly valuable.
Should CoreWeave succeed in bringing Core Scientific under its wing, it won’t just be an M&A win—it will mark a turning point in how AI, crypto, and infrastructure players collaborate and consolidate.
365247 Analysis:
CoreWeave’s pursuit of Core Scientific highlights the growing importance of infrastructure self-sufficiency in a world racing toward decentralized AI and digital compute power. With cloud cost pressures rising and demand for real-time processing growing, expect more such vertical mergers as firms seek to control every watt, rack, and byte.
