CoreWeave CEO Dismisses Core Scientific Deal Importance
In a stark statement, CoreWeave CEO Michael Intrator minimized Core Scientific’s role in the AI infrastructure race, labeling the bitcoin miner-turned-AI host as “not a need to have.” The remarks arrive as Core Scientific shareholders push back against a proposed $1.6 billion acquisition, citing undervaluation and strategic risks.
The $1.6B Deal Facing Backlash
Core Scientific, a top public bitcoin miner, announced a 12-year agreement with CoreWeave in June to repurpose 200MW of its infrastructure for AI and high-performance computing (HPC). The deal included a $5.75/share buyout offer, valuing the company at $1.6 billion.
Yet, shareholders argue:
– Undervaluation: Core Scientific’s assets and growth potential exceed the offer.
– Strategic Uncertainty: Shifting from profitable bitcoin mining to AI hosting may be premature.
– Lack of Alternatives: Did Core Scientific explore better bids?
Investor Outcry Intensifies
Intrator’s comments—“There are plenty of other providers we can work with”—angered stakeholders. One institutional investor told NextMinuteNews:
“If CoreWeave sees this as optional, why lock into a deal that shortchanges us?”
Major hedge funds and crypto investors are now:
1. Demanding a higher price.
2. Pushing to reject the deal entirely.
3. Advocating for Core Scientific to remain independent.
Broader Industry Tensions
The clash reflects a wider debate as bitcoin miners pivot to AI:
– AI Boom: Surging demand for GPU power drives deals like this.
– Crypto Loyalists: Some believe bitcoin mining’s profitability (especially post-halving) outshines AI’s allure.
Core Scientific’s stock (CORZ) has swung wildly since the announcement, while CoreWeave—fresh off a $7.5B funding round—signals it can expand without the deal.
What’s Next for the Deal?
With opposition growing, Core Scientific’s board must:
– Renegotiate terms to appease shareholders.
– Walk away and refocus on bitcoin/AI hybrid strategies.
For CoreWeave, Intrator’s stance suggests flexibility—but also raises questions about partnership stability in the AI arms race.
Follow NextMinuteNews for real-time updates on this high-stakes deal.
