CoreWeave Acquires Core Scientific in $9 Billion Stock Deal, Expanding Data Center Capacity for AI Workloads
AI-summarised brief · reviewed before publication
CoreWeave, a technology company, announced on Monday that it has signed a $9 billion all-stock deal to acquire Core Scientific, a data center infrastructure provider. This acquisition will provide CoreWeave with access to more than a gigawatt of data center capacity, equivalent to the energy needed to power over 850,000 homes. The additional capacity will enable CoreWeave to rent out data center space specifically designed for AI training and inference workloads. Notably, both CoreWeave and Core Scientific previously offered Bitcoin mining services, but will now repurpose their GPU infrastructure to run and train generative AI models. This move is seen as a response to the growing demand for data center capacity from AI companies, which require immense computational power to process and analyze large datasets. Cloud infrastructure providers are racing to expand their data center footprint to meet this demand. In a related development, Bloomberg reported last week that OpenAI has struck a deal with Oracle to rent an additional 4.5 gigawatts' worth of data center capacity, building on their existing Stargate infrastructure partnership. The acquisition is expected to significantly enhance CoreWeave's capabilities in supporting AI workloads, positioning the company for growth in this rapidly expanding market.
