📰 Major AI Power Deal Just Closed — What You Need to Know
CoreWeave pays $9 billion for Core Scientific. A win for investors?
Yesterday, after nearly two weeks of rumors, CoreWeave CRWV 0.00%↑ officially announced it has acquired long-time partner Core Scientific CORZ 0.00%↑ in a $9 billion all-stock deal. CoreWeave is best known for its user-friendly, GPU-powered cloud platform for AI and heavy computing — and will now bring its data centers and power contracts in-house.
Since 2018, CoreWeave relied on Core Scientific to build and run the large facilities and electrical systems that power its GPUs. Core Scientific began in crypto-mining but now hosts AI and HPC workloads, handling power agreements and site operations so CoreWeave’s customers can spin up machines with a few clicks.
By buying Core Scientific, CoreWeave solves three big challenges at once:
Power control: AI and HPC workloads consume massive amounts of electricity. Owning 1.3 GW of capacity (with room to add another 1 GW) frees CoreWeave from bidding wars and rising lease rates.
Cost savings: Instead of over $10 billion in future lease fees, CoreWeave converts those commitments into owned assets — forecasting about $500 million in annual savings by late 2027.
Seamless expertise: Core Scientific’s team brings 150+ years of combined data-center know-how, helping CoreWeave upgrade, maintain, and scale its infrastructure faster than starting from scratch.
In short, CoreWeave shifts from renting space and power to owning it. That gives the company more freedom to expand, innovate, and boost profits over time.
The deal in detail
Here is a breakdown of the key terms and structure of the deal:
All-stock transaction: CoreWeave pays with shares instead of cash, so it keeps its cash available for running and growing the business.
Deal value: $9 billion in CoreWeave stock.
Exchange ratio: Each CORZ share converts to 0.1235 CRWV shares.
Implied price: $20.40 per CORZ share; the final value depends on CoreWeave’s share price when the deal closes.
Power capacity: 1.3 GW of data-center power now + room to add another 1 GW.
Approvals: Must be approved by each company’s shareholders and by regulators.
Closing timetable: Expected in Q4 2025.
What it means for shareholders
For CoreWeave investors, this $9 billion all-stock deal means you’ll own a smaller slice of the company today. CoreWeave shares fell about 3 percent after the news. But in return, CoreWeave takes control of roughly 1.3 GW of power capacity (with room to add another 1 GW) and wipes out over $10 billion in future lease bills. Management says owning rather than renting will save about $500 million a year by late 2027, boost profit margins, and give the company more freedom to roll out new AI capacity quickly. In short, you trade short-term dilution for a stronger, more self-reliant business that can grow steadily as AI demand rises.
If you own Core Scientific stock, each CORZ share converts into 0.1235 CRWV shares. Based on CRWV’s closing price on July 3, that is $20.40 per share, but the final rate depends on CRWV’s share price when the deal closes. That uncertainty sent Core Scientific down 18% yesterday. Many fear CoreWeave’s stock price could fall before the deal is closed. In the end, you’ll hold under 10% of the combined company, and with CoreWeave’s IPO lock-up ending in Q3 2025, further selling pressure could follow. On the upside, you end up with a stake in a larger, well-funded AI infrastructure platform backed by clear cost-saving plans.
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Looking ahead
With this $9 billion stock deal, CoreWeave now owns the data centers and power capacity it used to rent. Going forward, it all comes down to how smoothly CoreWeave brings Core Scientific’s operations into its own and keeps pace with growing AI and HPC needs.
For Core Scientific holders: Keep an eye on CRWV’s share price — it sets your final exchange rate — and remember the IPO lock-up ends in Q3 2025, when more shares could hit the market.
For CoreWeave investors: Watch quarterly reports for integration milestones and cost-saving progress. New capacity coming online or expense reductions hitting targets will show whether owning infrastructure really pays off.
Want deeper insights? Watch yesterday’s video where Jim Cramer interviews CoreWeave CEO Michael Intrator 👇
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Until then, invest wisely.
Vincent & Stefan
The Future Investors
Sources: CoreWeave Press Release, MarketBeat, CNBC
Disclaimer:
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