CoreWeave Reopens Talks to Acquire Core Scientific amid AI Boom
CoreWeave, a leading AI cloud infrastructure provider, is reportedly in new talks to buy Bitcoin miner core Scientific. This comes after Core Scientific rejected a $1 billion offer last year. The renewed interest highlights the growing demand for AI and the tightening margins in Bitcoin mining.
On June 26, the Wall Street Journal revealed that CoreWeave, backed by Nvidia, is eyeing Core Scientific again. The AI cloud company powers giants like OpenAI and Microsoft.The market responded positively, with Core Scientific’s stock soaring 28%, nearing a $4 billion valuation.
CoreWeave’s initial $1 billion bid was dismissed as too low. Now, with AI’s surge and mining challenges, the terms are undisclosed. The two companies have a history of collaboration, including a 200-megawatt power deal. This move could secure the infrastructure CoreWeave needs to compete in the AI race. CoreWeave’s IPO and partnerships give it a strong position, but it lacks extensive data centers.
Core Scientific’s facilities, near cheap power sources, are perfect for AI workloads. Owning Core Scientific would give CoreWeave direct control over power contracts,crucial for AI expansion. For Core Scientific, the timing is strategic. After emerging from bankruptcy,Bitcoin’s halving cut mining rewards. though, their first-quarter profit of $580 million shows they’re no longer a distressed asset.
Whether the deal closes or not, it highlights a shift in digital infrastructure. The boundary between Bitcoin mining and AI computing is thinning due to shared power needs. Core Scientific’s real value may be its grid connections, not just mining rigs. This deal could reshape the digital landscape,blending AI and mining infrastructure.
