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CoreWeave to Acquire Core Scientific in $9 Billion AI Infrastructure Deal

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CoreWeave announced on Monday it will acquire bitcoin miner Core Scientific in an all-stock deal valued at approximately $9 billion, as AI infrastructure companies intensify efforts to secure energy and data center capacity to meet surging demand. The deal reflects a broader trend where crypto firms—once focused on digital assets—are becoming essential to powering artificial intelligence workloads.

Core Scientific shareholders will receive 0.1235 CoreWeave shares for each of their shares, valuing the company at $20.40 per share—a 66% premium from the stock’s last closing price before deal talks emerged in late June. Despite this, Core Scientific shares dropped 22% in early trading Monday, while CoreWeave shares slid 4.5%.

The acquisition is expected to close in Q4 2025, with the final price set at that time. CoreWeave CEO Michael Intrator said the deal will “accelerate our strategy to deploy AI and HPC workloads at scale” and eliminate over $10 billion in future lease liabilities over 12 years.

A Strategic Pivot from Crypto to AI

Bitcoin miners, known for their energy-intensive operations, are increasingly being courted by AI companies. CoreWeave will gain control of Core Scientific’s 1.3 gigawatts (GW) of contracted power—critical capacity in the tight market for AI data center expansion.

Analyst Gautam Chhugani of Bernstein noted that the deal “sets the bar” for other crypto miners considering an AI pivot, with power supply emerging as a key bottleneck for the AI industry.

Founded in 2017 as an Ethereum miner, CoreWeave pivoted toward AI following Ethereum’s “Merge” upgrade in 2022, which rendered mining unprofitable. Since then, its revenue has surged, growing over eightfold in 2024, according to its IPO prospectus. The company now has a market valuation of about $79 billion.

A Turnaround Story for Core Scientific

Core Scientific filed for bankruptcy in late 2022, hit hard by plummeting bitcoin prices and soaring energy costs. It emerged in early 2024 with a renewed strategy, signing 12-year agreements with CoreWeave to lease out data center capacity—including one deal for 200 MW of infrastructure for AI computing.

The merger marks a dramatic turnaround and a strategic shift for Core Scientific, from mining crypto to becoming a foundational pillar of AI infrastructure.

Goldman Sachs advised CoreWeave on the transaction, while Moelis & Co and PJT Partners advised Core Scientific.

Elon Musk’s xAI Secures $10 Billion in Funding for AI Expansion, Morgan Stanley Confirms

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Elon Musk’s artificial intelligence venture, xAI, has successfully raised $10 billion—split evenly between debt financing and strategic equity investment—as it ramps up efforts to scale infrastructure and compete in the intensifying AI arms race, Morgan Stanley confirmed Monday.

According to a statement posted on X, the $5 billion in debt funding includes a mix of secured notes and term loans and was oversubscribed, drawing in prominent global debt investors. Meanwhile, xAI also completed a separate $5 billion equity raise, with Morgan Stanley describing the capital as “strategic”—a likely reference to targeted investments from industry or institutional players.

Earlier reports by Reuters indicated that xAI was on track to finalize the debt round despite tepid early interest. Bloomberg had separately reported that the AI firm was also pursuing an additional $4.3 billion equity round on top of the debt raise, and had even floated a potential $20 billion equity raise that could push the company’s valuation as high as $200 billion. Current investor estimates place xAI’s valuation at over $120 billion.

The new funds will support the development of AI models, the expansion of data center infrastructure, and growth of xAI’s flagship Grok platform, a generative AI chatbot positioned to rival OpenAI’s ChatGPT and Google’s Gemini.

xAI has not issued a public statement, and declined to comment when contacted by Reuters outside of business hours.

The massive funding round highlights investor confidence in Musk’s ability to build a major player in the AI space, leveraging assets across his business empire, including Tesla, SpaceX, and X (formerly Twitter).

Microsoft Plans Thousands of Job Cuts Amid AI Expansion

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Microsoft is preparing to lay off thousands of employees, particularly in its sales division, according to a Bloomberg News report published Wednesday. The move comes as the company accelerates investments in artificial intelligence (AI) and realigns its workforce to support the growing demands of the technology.

The layoffs are expected to be announced early next month, following the end of Microsoft’s fiscal year. While the exact number of job cuts has not been confirmed, sources suggest that the move will impact more than just sales roles. Microsoft declined to comment on the report.

This would mark the second significant round of layoffs in 2025, following cuts in May that affected around 6,000 employees.

The tech giant has committed a record $80 billion in capital expenditure this fiscal year, with most of that spending allocated to expanding data centers and AI infrastructure. These investments are designed to support Microsoft’s growing suite of AI-powered services, including its close partnership with OpenAI and integration of generative AI across its software platforms.

The shift mirrors trends across the industry. Amazon CEO Andy Jassy stated on Tuesday that generative AI and agent technologies would likely reduce corporate workforce needs over the coming years, underscoring how automation and AI are reshaping traditional business roles.

With a global workforce of 228,000 employees as of June 2024, Microsoft is balancing aggressive growth in AI with internal restructuring — a sign of how tech giants are repositioning for the next phase of innovation-driven competition.