CoreWeave and Core Scientific Stocks Plunge Amid Data Center Delay Concerns
The cryptocurrency and AI infrastructure sectors faced a market shakeup as tensions between CoreWeave and Core Scientific led to a sharp decline in both companies’ stock prices. CoreWeave CEO Michael Intrator declined to clarify whether Core Scientific caused delays in their data center projects, sparking investor panic. CoreWeave’s valuation dropped 12%, while Core Scientific’s shares fell 18% in intraday trading.
The High-Stakes Partnership Between CoreWeave and Core Scientific
CoreWeave, a top cloud computing provider for AI workloads, partnered with Bitcoin miner Core Scientific earlier this year to secure 200 megawatts of data center capacity. The deal was seen as a win-win—Core Scientific could diversify beyond crypto mining, while CoreWeave expanded its infrastructure.
Uncertainty Over Data Center Delays
Recent reports suggest the project has faced unexpected setbacks. When pressed on whether Core Scientific was responsible, Intrator stated:
“We’re working through some logistical challenges with all our partners.”
Core Scientific claimed it was “on track” but cited “supply chain complexities.” The lack of transparency triggered investor skepticism.
Market Reaction: Stocks Nosedive
- Core Scientific (CORZ) hit a three-month low, worsened by Bitcoin’s volatility.
- CoreWeave’s $19B private valuation came under scrutiny.
Analyst Priya Kapoor (Bernstein & Co) noted:
“The market hates uncertainty. If Core Scientific is the bottleneck, CoreWeave’s growth plans could be at risk.”
Broader Impact on AI and Crypto Sectors
- CoreWeave’s delays could disrupt AI firms relying on its GPU power.
- Core Scientific’s struggles highlight risks for Bitcoin miners pivoting to AI.
What’s Next for CoreWeave and Core Scientific?
Both companies face pressure to clarify the partnership’s status. Investors demand:
1. Transparency on delays.
2. Proof of execution from Core Scientific.
Until then, stock volatility is expected to continue.
