CoreWeave didn’t sneak into the AI boom; it essentially barged in.
Just a year ago, CoreWeave was known as a niche GPU shop that users whispered about; now it’s the platform CIOs are name-checking in boardrooms.
The company’s IPO landed at $40 in late March, and since then, it has burst through the gate, becoming a must-own proxy on AI demand. Capacity continues to impress as some of the biggest tech customers keep lining up.
As many would imagine, the next chapter in its history reads like scale-by-acquisition. Enter the big tie-up with Core Scientific, a move to layer compute demand with power, land, and data-center muscle.
Deal size: About $5 billion for Core Scientific
Consideration:All-stock, valuing CORZ at roughly $20.40 per share
Timing: Shareholder vote is scheduled for Oct. 30
On paper, it has all the ingredients of a Wall Street favorite pairing: A fast-growing AI platform is securing long-run capacity, while a proven operator is plugging into a premium demand funnel.
However, somewhere between the slide deck and the proxy countdown, the story has encountered a wrinkle, and that’s exactly where the plot starts to turn.
CoreWeave’s high-profile AI merger faces turbulence ahead of a crucial Oct. 30 vote.Nagle/Bloomberg via Getty Images
CoreWeave’s $5 billion bid for Core Scientific just hit a roadblock.
Reports suggest that multiple major shareholders are huddling up against the deal ahead of the Oct. 30 vote, saying that the math no longer works. Hence, what was more of a clean AI-infrastructure merger just turned into a high-stakes standoff.
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Two Seas Capital, CORZ’s largest active holder with nearly 6.3% of the stock, went public with a hard “no” on the deal, publishing detailed decks arguing the company is being undervalued.
Similarly, Gullane Capital’s Trip Miller, another top-three shareholder, told Business Insider that he’s also opposing the merger, feeling that the numbers are “broken.”
The issue at hand is that the original $20.40-per-share all-stock bid, announced in July, was around a share exchange, which is worth closer to $17 on the back of the recent price swings.
CoreWeave says it’s not looking to raise the offer, sticking to the current terms. Meanwhile, the CORZ board is still recommending a “yes” vote, led by synergies, stability, and long-term scale.
If the deal falls through, it could have some serious implications for the broader AI infrastructure space, where consolidation has been running hot. For CoreWeave investors, that could take away a lot of the buzz that the stock’s been generating over the past few months.
If there are revised terms, a delayed vote, or an outright breakup, it could put CoreWeave stock under immense pressure.
Big holders push back: CoreWeave’s high-profile $5 billion Core Scientific bid is facing resistance from major investors ahead of the Oct. 30 vote.
Deal math flips: The $20.40-per-share offer currently implies closer to $17, and CoreWeave isn’t budging.
High stakes ahead: Revisions, delays, or a breakup could potentially rattle AI-infrastructure stocks, putting CoreWeave’s rally under pressure.
CoreWeave has effectively gone from a niche GPU cloud player to a headline-maker in the AI space.
The Nvidia-backed upstart priced its IPO at $40 on Mar. 28, 2025. Its stock surged over 42% to $52.57 by just the third day, and by mid-October, it commanded a $71 billion market cap, nearly 4x its debut valuation.
The frenzy was backed by a couple of anchor contracts and one critical supply backstop. First, Meta locked in a massive long-term AI-compute deal worth $14.2 billion with CoreWeave that runs through Dec. 2031 (extendable to 2032), giving the latter multi-year revenue visibility with a top-tier hyperscaler.
Second, Nvidia inked an initial $6.3 billion order, agreeing to effectively backstop any unsold capacity through Apr. 2032, derisking CoreWeave’s expansion and utilization during its capacity ramp.
However, the Nvidia link runs a lot deeper, with the AI chipmaker owning 24.3 million CoreWeave stock (coming to a $3 billion stake as of late September). More importantly, the deal enables CoreWeave to secure scarce GB-series chips while bidding for mega-deals smaller rivals can’t touch.
Capacity is the game plan.
In Texas, CoreWeave’s powerful new Project Horizon with Poolside AI involves the development of a massive, multi-phase campus, spearheaded by 250MW of power and 40,000+ Nvidia GB300 GPUs coming online by Dec. 2025, with the option to grow past 500MW.
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