Mirror Review
July 8, 2025
Summary:
- AI-focused cloud provider CoreWeave is set to acquire data center operator Core Scientific in an all-stock transaction valued at approximately $9 billion.
- Under the agreement, Core Scientific shareholders will receive 0.1235 shares of CoreWeave for each share they own. Following the deal, they will hold less than 10% of the combined company.
- The acquisition is expected to be finalized in the fourth quarter of 2025. It allows CoreWeave to own its data center infrastructure, aiming to reduce costs and secure its path for future growth in the AI sector.
Why would an AI cloud giant spend $9 billion to acquire a data center operator?
For CoreWeave, buying its long-time partner Core Scientific isn’t just about acquiring buildings; it’s a move to secure the foundational pillars of the AI revolution: power, speed, and control.
This all-stock deal, announced on July 7, 2025, will see CoreWeave absorb Core Scientific’s extensive data centers across the US and therefore, become a leading AI Hyperscaler.
As Michael Intrator, CoreWeave’s CEO, put it, “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.”
So here are the ten strategic advantages that make Core Scientific Infrastructure a $9 billion asset for CoreWeave.
1. Massive, Available Power Capacity (2.3 GW+ Potential)
In an energy-constrained world, power is the ultimate commodity.
Core Scientific brings approximately 1.3 GW of gross power across its national data center footprint to the deal.
This is broken down into tangible assets: about 840 MW are already supporting CoreWeave’s high-performance computing (HPC) contracts, and ~500 MW are dedicated to crypto mining data centers.
Crucially, the deal also secures an incremental 1 GW+ of potential gross power available for future expansion.
2. “Shovel-Ready” Infrastructure
CoreWeave isn’t buying empty plots of land; it’s acquiring fully operational, “shovel-ready” infrastructure.
This includes purpose-built facilities ranging from 150,000 to 250,000 square feet that are already optimized for high-density workloads.
This “ready-to-scale” infrastructure is a key asset, as evidenced by Core Scientific’s progress in delivering an 8MW tranche of power in Denton, with another 40MW planned for the quarter, as part of a plan to deliver 250MW of billable capacity to CoreWeave by the end of the year.
3. High-Density Workload Readiness
These facilities are not traditional data centers.
They are purpose-built to support the extreme power and cooling demands of modern AI, cloud services, and HPC workloads
Core Scientific provides innovative systems and advanced cooling technologies designed specifically for these high-energy environments. It enables the speed and efficiency required for large-scale AI model training and inference.
4. Proven Conversion Expertise (Crypto to AI)
Core Scientific possesses a rare and valuable skill: the proven ability to convert digital mining facilities into high-performance computing centers.
This operational know-how was refined during their pivot from crypto to HPC after emerging from bankruptcy in 2024.
CoreWeave’s CEO, Mike Intrator, confirmed this value, stating that the cost of converting these sites is less than building new AI data centers from scratch.
5. Projected $10 Billion+ in Lease Cost Savings
The financial logic of the deal is actually very interesting.
A primary benefit is the immediate elimination of “over $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years”.
This massive long-term saving was a key reason for the acquisition. As CEO Mike Intrator bluntly told CNBC, “We’re not paying rent, right, for the next 15 years”.
6. Forecasted $500 Million in Annual Operational Savings
Beyond just lease costs, the acquisition is structured to create significant operational efficiencies.
CoreWeave projects the deal will add “$500 million of estimated fully ramped, annual run rate cost savings by the end of 2027 through streamlined operational focus”.
This boosts long-term profitability and gives CoreWeave a competitive edge.
7. Vertical Integration for Efficiency
By acquiring Core Scientific, CoreWeave brings its most critical infrastructure layer in-house.
This is a strategy of other hyperscalers who build some infrastructure while using third parties for other parts.
CEO Michael Intrator stated that “verticalizing the ownership” of this infrastructure will “significantly enhance operating efficiency and de-risk our future expansion”.
It gives them a balanced and resilient operational model.
8. Enhanced Financing Flexibility
Owning these hard assets fundamentally changes CoreWeave’s financial options.
The company can now pursue “diverse financing sources at a more attractive cost of capital,” including infrastructure-specific financing.
This is a significant advantage, considering CoreWeave’s weighted average interest rate on its short-term debt was 10.1% as of March 31.
9. A Deep, Trust-Based Partnership
CoreWeave has been a “longstanding partner” of Core Scientific since 2018 and has been a major client, experiencing firsthand the “operational excellence” and value Core Scientific delivers.
Therefore, this acquisition is the result of a multi-year, trusted relationship that provides a high degree of confidence in the quality and reliability of the assets and team being acquired.
10. Quick Time-to-Market for AI Deployment
Speed is a decisive competitive advantage in the rapidly growing AI industry.
Core Scientific’s “rapid deployment capabilities” and ready-to-scale infrastructure allow clients to “move fast, outpace competitors, and stay ahead of AI’s rapid evolution”.
So, by acquiring this capability, CoreWeave can bring new AI compute online in months, not years, therefore gaining a competitive advantage in the market.
Conclusion
At the end of the day, this $9 billion acquisition is about positioning.
CoreWeave is acquiring power, real estate, and Core Scientific infrastructure at a time when demand for AI compute is exploding.
By bringing Core Scientific’s proven assets and operational expertise in-house, CoreWeave isn’t just cutting costs—it’s building a foundation to grow faster, more efficiently, and with greater control than ever before.
In a world where every millisecond of compute and megawatt of power matters, CoreWeave now holds the keys to both. That’s why this deal goes far beyond just data centers—it’s about owning the infrastructure that shapes the future of AI.
So, whether you’re watching the AI space, cloud infrastructure, or just curious about where the next wave of tech investment is going, this is a deal worth paying attention to!
