Nvidia-backed CoreWeave to buy crypto miner Core Scientific in $9 billion deal
The acquisition highlights how artificial intelligence companies are moving beyond traditional data centers and looking to repurpose the energy-intensive sites and power contracts bitcoin miners built during the crypto boom.
The deal will help in the immediate elimination of more than $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years, CoreWeave said.
The offer represents a $20.40 per share value and implies a premium of nearly 66 per cent to Core Scientific stock's close before reports of potential deal talks first appeared in late June.
Core Scientific's shares fell 15 per cent before the bell, while Nvidia-backed CoreWeave was last down 4 per cent.
The deal is expected to close in the fourth quarter, and the final price will be determined at that time, the companies said.
Founded as an Ethereum-focused crypto miner in 2017, CoreWeave pivoted to AI a few years later. It shuttered its mining business after "The Merge", Ethereum's 2022 upgrade, slashed rewards for miners.
CoreWeave's revenue has grown at breakneck speed, climbing more than eight-fold last year, according to its IPO prospectus.
The deal marks a turnaround for Core Scientific, which filed for bankruptcy in late 2022 following a sharp drop in bitcoin prices and soaring energy costs. The company exited bankruptcy in early 2024.
Core Scientific received an unsolicited non-binding proposal from CoreWeave in June last year to acquire all of the company's outstanding shares.
At the time, Core Scientific had said that the deal significantly undervalued it and was not in the best interests of the company and its shareholders.
The two companies signed a series of 12-year contracts then, including an agreement under which Core Scientific would provide CoreWeave with about 200 MW of infrastructure to power its high-performance computing services.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 hours ago
- Straits Times
Samsung's bet on foldable phones faces major test with slimmer new model
Sign up now: Get ST's newsletters delivered to your inbox Samsung lost its global smartphone crown to Apple in 2023, and faces growing competition from Chinese rivals. SEOUL - Samsung Electronics on July 9 unveiled thinner, lighter new foldable phones as it aims to fend off Chinese competition in the higher-margin, premium segment that remains untapped by arch rival Apple. The stakes are high. The South Korean company lost its global smartphone crown to Apple in 2023, and faces growing competition from Chinese rivals like Huawei and Honor. Meanwhile, Samsung's mainstay chip business has suffered a profit slump stemming in part from its delayed supply of artificial intelligence chips to Nvidia. Samsung's mobile president and chief operating officer, Mr Choi Won-joon, said his most important mission was to make Samsung a leader in AI-powered smartphones. 'I believe that foldable phones, integrated with AI features, are ready to become mainstream by offering unique, differentiated experience,' he told Reuters in his first media interview since being promoted in March. He said Samsung aims to take a leadership position in AI by enhancing cooperation with external partners like Google , unlike Apple, which has been using in-house AI technology that has faced delays in adding key features. Samsung also in New York unveiled its first smartwatches equipped with Google's AI voice assistant, Gemini, which can make recommendations to the owner such as good locations for a run, as an example. Top stories Swipe. Select. Stay informed. World Trump's ambassador nominee to Singapore Anjani Sinha has a rough day at Senate hearing Asia Dr Mahathir at 100: Still haunted by the Malay Dilemma Singapore Academic paper by NUS researchers withdrawn from peer review after hidden AI prompt found Singapore Apex court upholds SMC's conviction of doctor who gave patients unapproved hormones Multimedia 60 objects to mark SG60: Which is your favourite? Singapore Singaporean fugitive arrested in Thailand for suspected drug trafficking and handed over to CNB World Trump issues tariff notices to 7 minor trading partners, hits Brazil with 50% tariff Business SGX securities turnover up 23% in June, bringing financial year's gain to 28% Premium halo Samsung said in April that it was pushing ahead with a premium product strategy, as US tariffs threatened to dampen demand and raise component costs. The smartphone maker increased the US price of Galaxy Z Fold 7 to US$1,999 (S$2,557) by 5 per cent from its predecessor Fold 6, while introducing a less expensive version of its Galaxy Z Flip 7 clamshell phone, Flip 7 FE, priced at US$899. Galaxy Z Fold 7 is equipped with Qualcomm's fast processor, Snapdragon 8 Elite, while Galaxy Z Flip 7 is powered by Samsung's in-house Exynos chips. Analysts said Samsung's new models tackled some of the issues with foldable phones such as bulkiness, and would create a premium halo around the brand. The Galaxy Z Fold 7 weighs 10 per cent less than its predecessor and is 26 per cent thinner. But high prices and a lack of use cases mean foldable phones are likely to remain a niche segment, the analysts said, with data from research firm IDC showing they account for just 1.5 per cent of the total smartphone market. Research firm Canalys predicts Samsung's foldable shipments, which peaked in 2022, will remain flat or slightly declining in 2025, in line with the broader market's flat growth, according to data provided to Reuters. Samsung's foldable smartphones account for 4 per cent of its total phone sales but 16 per cent of those priced over US$800, Canalys said. Its data shows Samsung's dominance of the foldable phone segment is being eroded by Honor and Huawei, which are enjoying strong sales, especially in China. Samsung, which held its unveiling event in New York on July 9, will focus on the United States, Europe and South Korea for foldable phone sales, Mr Choi said. Mr Choi said Samsung is 'working hard' to develop tri-foldable phones, which users can fold three ways, without elaborating on the launch date. In the meantime, Mr Choi said Samsung accelerated output and shipments of smartphones bound for the US to mitigate the impact of looming US tariffs, without giving details. Samsung produces its smartphones in Vietnam, which accounts for more than half of its phone output, as well as in South Korea and India. He also said Samsung has been tackling China's export curbs on rare earth and rare earth magnets by diversifying suppliers beyond the dominant supplier and significantly increasing its own internal stockpiles. REUTERS
Straits Times
2 hours ago
- Straits Times
Australia's beef exports to the US surge despite Trump tariffs
Sign up now: Get ST's newsletters delivered to your inbox The US is the biggest market for Australia's almost A$14 billion beef and veal export sector. Australia's total beef exports to the US rose significantly in June in the face of US President Donald Trump's new tariff regime, which saw the American leader specifically single out Canberra for refusing to accept adequate red meat imports. Exports of chilled and frozen beef to the US jumped 23 per cent from June 2024 , according to Meat & Livestock Australia data released on J uly 10 . Shipments in the first six months were up almost a third from the same period in 2024 . The US is the biggest market for Australia's almost A$14 billion (S$11.7 billion) beef and veal export sector, and is one of America's largest foreign sources of red meat. Shipments to the US currently face a flat 10 per cent tariff, and Mr Trump singled out the nation for not buying enough US produce in the April press conference where he announced his administration's 'reciprocal' trade rates. Exports to China more than doubled from June 2024 and were just a third below those to the US, the July 10 data showed. Diplomatic tensions had hampered agricultural shipments between the two nations following the Covid-19 pandemic, although relations improved after the election of the centre-left Labor government in 2022, and trade has largely resumed. BLOOMBERG Top stories Swipe. Select. Stay informed. World Trump's ambassador nominee to Singapore Anjani Sinha has a rough day at Senate hearing Asia Dr Mahathir at 100: Still haunted by the Malay Dilemma Singapore Academic paper by NUS researchers withdrawn from peer review after hidden AI prompt found Singapore Apex court upholds SMC's conviction of doctor who gave patients unapproved hormones Multimedia 60 objects to mark SG60: Which is your favourite? Singapore Singaporean fugitive arrested in Thailand for suspected drug trafficking and handed over to CNB World Trump issues tariff notices to 7 minor trading partners, hits Brazil with 50% tariff Business SGX securities turnover up 23% in June, bringing financial year's gain to 28%
Straits Times
2 hours ago
- Straits Times
Trump names Transportation Secretary Duffy as interim Nasa administrator
Sign up now: Get ST's newsletters delivered to your inbox More than 2,100 senior-ranking NASA employees are set to leave their jobs. WASHINGTON - US President Donald Trump tapped US Transportation Secretary Sean Duffy to serve as the interim administrator of Nasa on July 8, a role that has remained vacant since Mr Trump withdrew his initial nominee. Mr Duffy will temporarily take over the post that has been in the spotlight due to Mr Trump's feud with billionaire Elon Musk , who wanted his close ally Jared Isaacman to lead the space agency. 'Sean is doing a tremendous job in handling our country's transportation affairs ... He will be a fantastic leader of the ever more important space agency, even if only for a short period of time,' Mr Trump wrote on Truth Social. Mr Trump named Mr Isaacman, a billionaire private astronaut, to be the NASA administrator in December 2025, before abruptly withdrawing his nomination in May , in a decision that angered SpaceX owner Mr Musk. While at the time the White House did not provide an explanation for pulling Mr Isaacman's nomination, the US President has since said it was 'inappropriate' to have named Mr Isaacman as Nasa administrator, considering Mr Musk's business with the space agency. After Mr Trump's announcement on July 8, Mr Isaacman called it 'a great move' and wished Mr Duffy well. 'Nasa needs political leadership from someone the President trusts and has confidence in,' Mr Isaacman said on X. Top stories Swipe. Select. Stay informed. World Trump's ambassador nominee to Singapore Anjani Sinha has a rough day at Senate hearing Asia Dr Mahathir at 100: Still haunted by the Malay Dilemma Singapore Academic paper by NUS researchers withdrawn from peer review after hidden AI prompt found Singapore Apex court upholds SMC's conviction of doctor who gave patients unapproved hormones Multimedia 60 objects to mark SG60: Which is your favourite? Singapore Singaporean fugitive arrested in Thailand for suspected drug trafficking and handed over to CNB World Trump issues tariff notices to 7 minor trading partners, hits Brazil with 50% tariff Business SGX securities turnover up 23% in June, bringing financial year's gain to 28% Mr Trump's announcement came as Politico reported that more than 2,100 senior-ranking Nasa employees are set to leave their jobs under a push by the administration to shed staff through early retirement, buyouts and deferred resignations. Under Mr Trump's administration, the US space industry and Nasa's workforce of 18,000 have been whipsawed by looming layoffs and proposed budget cuts that would cancel dozens of science programs. REUTERS
