CoreWeave’s pending Core Scientific buy gives ‘optionality’ as AI needs evolve
The post CoreWeave’s pending Core Scientific buy gives ‘optionality’ as AI needs evolve appeared on BitcoinEthereumNews.com. CoreWeave’s pending acquisition of Core Scientific reflects the ongoing race to meet the growing demand for high-performance computing (HPC) infrastructure as AI needs evolve. A year after Core Scientific (CORZ) rejected CoreWeave’s bid to buy out the bitcoin miner — and with CORZ stock roughly tripling since that time — the combination is now deemed mutually beneficial. The all-stock deal would give CORZ stockholders 0.1235 newly issued shares of CoreWeave (CRWV) stock for each share of CORZ stock. Expected to close in the fourth quarter, the transaction is valued at roughly $9 billion and comes two months after CoreWeave’s acquisition of AI developer platform Weights & Biases in May. While Core Scientific tallied $67 million in digital asset self-mining revenue during the first quarter, CoreWeave CEO Michael Intrator made clear the company is not looking to expand its crypto market footprint. “Our lens on the physical infrastructure is that it provides us with tremendous optionality to be able to provide massive computing infrastructure for our clients,” he said during a Monday investor call. Goldman Sachs predicts global data center power demand to increase up to 165% between 2023 and 2030. Amazon CEO Andy Jassy said during a February earnings call that Amazon Web Services plans to spend $100 billion on AI infrastructure in 2025. The CoreWeave-Core Scientific combination would eliminate roughly $10 billion of future lease overhead for existing contractual sites over the next 12 years, CoreWeave executives noted. It also gives the cloud provider the ability to repurpose infrastructure dedicated to crypto mining for HPC usage in the medium term, they added. Previous bid rejected, CoreWeave’s IPO The two companies last year signed various 12-year contracts whereby Core Scientific agreed to offer 200 megawatts of infrastructure to host CoreWeave’s HPC services. CoreWeave then offered to buy all outstanding CORZ…
The post CoreWeave’s pending Core Scientific buy gives ‘optionality’ as AI needs evolve appeared on BitcoinEthereumNews.com.
CoreWeave’s pending acquisition of Core Scientific reflects the ongoing race to meet the growing demand for high-performance computing (HPC) infrastructure as AI needs evolve. A year after Core Scientific (CORZ) rejected CoreWeave’s bid to buy out the bitcoin miner — and with CORZ stock roughly tripling since that time — the combination is now deemed mutually beneficial. The all-stock deal would give CORZ stockholders 0.1235 newly issued shares of CoreWeave (CRWV) stock for each share of CORZ stock. Expected to close in the fourth quarter, the transaction is valued at roughly $9 billion and comes two months after CoreWeave’s acquisition of AI developer platform Weights & Biases in May. While Core Scientific tallied $67 million in digital asset self-mining revenue during the first quarter, CoreWeave CEO Michael Intrator made clear the company is not looking to expand its crypto market footprint. “Our lens on the physical infrastructure is that it provides us with tremendous optionality to be able to provide massive computing infrastructure for our clients,” he said during a Monday investor call. Goldman Sachs predicts global data center power demand to increase up to 165% between 2023 and 2030. Amazon CEO Andy Jassy said during a February earnings call that Amazon Web Services plans to spend $100 billion on AI infrastructure in 2025. The CoreWeave-Core Scientific combination would eliminate roughly $10 billion of future lease overhead for existing contractual sites over the next 12 years, CoreWeave executives noted. It also gives the cloud provider the ability to repurpose infrastructure dedicated to crypto mining for HPC usage in the medium term, they added. Previous bid rejected, CoreWeave’s IPO The two companies last year signed various 12-year contracts whereby Core Scientific agreed to offer 200 megawatts of infrastructure to host CoreWeave’s HPC services. CoreWeave then offered to buy all outstanding CORZ…
What's Your Reaction?
