AI hyperscaler buys its cryptomining partner for its AI GPUs and data center infrastructure — CoreWeave acquires Core Scientific in long-awaited move

AI hyperscaler CoreWeave is buying its longtime server provider partner Core Scientific in a new vertical acquisition in the AI market. CoreWeave and Core Scientific were both cryptocurrency mining companies that pivoted to providing AI servers for rent as the tech hype machine shifted, with Core Scientific providing gradually more and more server space to CoreWeave over the last year.

CoreWeave is adding around 1.21 GW of gross power to its capacity with the acquisition of Core Scientific's assets and national data center footprint, and the company expects to be able to add another 1 GW or more to this gross power through expansion. The majority of this power draw comes from Core Scientific's Austin, TX, plant. Core Scientific was previously providing 840 gross MW of power to support CoreWeave’s HPC contracts through the rental agreement between the two companies.

"This acquisition accelerates our strategy to deploy AI and HPC workloads at scale," said CoreWeave CEO Michael Intrator. "Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI’s full potential." Eliminating the overhead of leasing out the server space from Core Scientific is a major boon for CoreWeave, which was already fronting the cost of updating Core Scientific's outdated server space for compatibility with the bleeding edge of Nvidia's HPC products.

CoreWeave is a premier partner of Nvidia, a major purchaser of the latest Nvidia HPC products for use in its hyperscale operations. Nvidia has twice now launched its newest flagship server products in CoreWeave operations, including this month's world-first deployment of Grace Blackwell Ultra Superchip systems to CoreWeave. CoreWeave is likely to continue its close partnership and constant purchasing of the newest and brightest Nvidia kit as it expands its data center footprint.

The CoreWeave/Core Scientific acquisition is expected to wrap up by Q4 2025, save for any potential legal troubles. Both companies got their starts as cryptomining firms renting out compute to miners, with CoreWeave pivoting into the AI hyperscaling trend and Core Scientific content until this week to exist as a server supplier for CoreWeave.

The nature of operating a hyperscaling operation without the incredible capital support of multi-trillion-dollar corporations like Amazon and Google seems tenuous, though this major all-stock transaction seems to indicate CoreWeave's faith in its own ability to thrive in the top-heavy market.

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