Core Scientific (NASDAQ:CORZ) has once again found itself in the spotlight after reports emerged that CoreWeave (NASDAQ:CRWV), the AI cloud infrastructure firm with a market cap of over $75 billion, is in talks to acquire it. This marks a renewed effort following CoreWeave’s failed bid last year, which was rejected as undervalued. Core Scientific, once known solely for its Bitcoin mining operations, has rapidly repositioned itself as a high-density data infrastructure player, attracting attention amidst the ongoing AI boom. Its market value now hovers around $3.7 billion, and shares surged more than 20% following the news of renewed M&A discussions. The companies already have deep commercial ties through multi-year hosting agreements totaling hundreds of megawatts, and Core Scientific’s transformation into an AI-ready infrastructure firm seems to be what’s enticing CoreWeave. Despite Core Scientific being a loss-making enterprise, there are compelling reasons why CoreWeave is pushing to acquire it now.
Strategic Infrastructure Synergy & Execution Track Record
CoreWeave’s core business revolves around providing GPU-powered AI infrastructure to hyperscalers and large enterprise clients. However, demand for high-density compute environments has outpaced traditional data center capacity, opening opportunities for companies that can deliver purpose-built AI infrastructure at scale. Core Scientific fits this need precisely. Its shift from a Bitcoin miner to a provider of high-density colocation space tailored for accelerated compute workloads has created a unique value proposition. Core Scientific is currently building out 570 megawatts of capacity across facilities in Denton, Dalton, Marble, and Muskogee, with Denton alone expected to host one of the largest GPU clusters in North America, potentially housing over 100,000 Nvidia GB200s. With the first 8 megawatts already online and another 40 megawatts coming imminently, Core Scientific has demonstrated a rapid buildout capability unmatched by legacy data center players. This speed and efficiency in deploying AI-focused infrastructure could give CoreWeave not just more capacity, but also an experienced team and proven processes to help meet its own growth targets more quickly. The two companies have already collaborated extensively, particularly in Denton, where CoreWeave is understood to be working with OpenAI, suggesting operational synergies are already well-tested. Acquiring Core Scientific would allow CoreWeave to vertically integrate a critical infrastructure partner, reduce execution risk, and better control deployment timelines as AI demand continues to accelerate.
Capital-Light Growth Model with CoreWeave at the Center
One of the most attractive aspects of Core Scientific’s business model, particularly for a potential acquirer like CoreWeave, is its capital-light growth structure. Under the terms of their long-term agreements, CoreWeave funds virtually all of the capital expenditures for the high-density colocation facilities it uses. These are take-or-pay, fixed-price contracts, which means CoreWeave is obligated to pay for the infrastructure regardless of its usage. This not only guarantees a predictable revenue stream for Core Scientific but also minimizes its upfront investment risk—making its operations more scalable without significantly increasing leverage. From CoreWeave’s perspective, this arrangement is highly advantageous because it effectively de-risks its infrastructure expansion by ensuring dedicated capacity tailored to its needs. Moreover, Core Scientific has structured the contracts to include shared execution risk and secured the assets on-site through UCC-1 filings, which formalize its legal stake in the infrastructure installed. By acquiring Core Scientific, CoreWeave could consolidate this CapEx-efficient model within its balance sheet, further optimizing capital allocation while continuing to meet surging demand from clients like Microsoft and Meta. Additionally, the elimination of intermediary profit margins and enhanced coordination across site selection, construction, and capacity allocation could translate into stronger financial efficiency and faster go-to-market timelines. With Core Scientific already acting as a pseudo-extension of CoreWeave’s infrastructure, the acquisition would transform a dependent vendor into a fully integrated asset—without the burden of legacy data center debt or incompatible workloads.
First-Mover Advantage in AI-Optimized Data Center Capacity
Core Scientific is positioning itself as one of the very few publicly traded pure-plays focused exclusively on high-density colocation tailored to AI workloads. While most legacy data center providers are optimized for low-power CPU-based workloads, Core Scientific has intentionally engineered its new builds—particularly Denton and other upcoming sites—for GPU-dense environments. With growing demand from hyperscalers and enterprises rolling out generative AI and other high-performance applications, there is a clear mismatch between supply and required power density. Core Scientific’s ability to rapidly bring online customized infrastructure, such as the 260-megawatt Denton facility comprising 8 purpose-built buildings, gives it a first-mover advantage in this new paradigm of infrastructure. This is particularly significant given the long lead times and utility constraints faced by many traditional operators. For CoreWeave, which relies on rapid and expansive GPU deployment to maintain its position in the AI cloud space, controlling a platform that already has this head start could be strategically transformative. Additionally, Core Scientific’s site selection strategy—focusing on regions with favorable power availability and costs—aligns with the needs of high-density compute and ensures economic feasibility even under elevated CapEx scenarios triggered by tariffs or supply chain bottlenecks. Owning Core Scientific would enable CoreWeave to better forecast capacity readiness, expand into new geographies with pre-vetted utility partnerships, and keep ahead of AI-driven infrastructure demand without waiting for traditional builders to catch up.
Customer Diversification Potential & Platform Expansion
While CoreWeave currently represents 100% of Core Scientific’s AI-focused colocation revenue, the latter has made clear its intent to reduce that dependency. Management is targeting CoreWeave accounting for less than 50% of its billable capacity by the end of 2028. The company is actively in negotiations with hyperscalers and large enterprises, with potential deals ranging from 50 to 100 megawatts. These prospective customers include publicly listed enterprises with market caps exceeding $75 billion, offering similar or better credit profiles than hyperscale clients. Core Scientific also continues to acquire land and prep sites, including a 70-acre expansion adjacent to its existing Grand Forks facility, to support future growth. For CoreWeave, this ongoing diversification effort could be seen both as a risk and an opportunity. By acquiring Core Scientific, CoreWeave would not only secure exclusive access to an expanding pipeline of infrastructure but could also better control customer onboarding, service quality, and site usage across multiple tenants. Moreover, it could allow CoreWeave to offer differentiated infrastructure tiers tailored to hyperscale, enterprise, and content provider segments—without diluting operational focus. The acquisition could also help CoreWeave pre-empt potential rivals from building competing relationships with Core Scientific, thereby locking in one of the few players capable of high-volume, GPU-focused infrastructure buildout in North America.
Final Thoughts
Source: Yahoo Finance
We can clearly see Core Scientific’s stock price zooming up after CoreWeave’s act of resuming talks. Analysts such as Cantor Fitzgerald’s Brett Knoblauch note that the deal could deliver a compelling ROI for CoreWeave, especially given the value of Core Scientific’s rapidly scaling, AI-optimized data center footprint. The suggested valuation could exceed $30 per share, particularly if CoreWeave leverages an all-stock structure to fund the acquisition. In this context, Core Scientific’s capital-light model, execution track record, and strategic locations appear increasingly critical—not just for its own future, but for CoreWeave’s ability to meet surging infrastructure demand. Overall, we believe that as the AI infrastructure arms race intensifies, Core Scientific’s position in the value chain could prove increasingly pivotal—for buyers and shareholders alike.