Core Scientific shareholders decisively rejected a $9 billion all-stock acquisition proposal from rival CoreWeave, following a recommendation from their largest stakeholder, Sina Toussi of Two Seas Capital. This move comes on the heels of Core Scientific’s emergence from bankruptcy in January 2024, raising questions about the strategic direction of both companies.
Initially a cryptocurrency mining firm, Core Scientific shares a historical connection with CoreWeave, which has evolved into an AI data center provider with significant investments, including a partnership with Nvidia. The company has seen its stock value soar from a $14 billion market cap at its IPO to approximately $66 billion today, reflecting confidence in its pivot to AI workloads and its aggressive acquisition strategy.
Prior to the failed acquisition, CoreWeave had established a $10 billion, 12-year contract with Core Scientific to utilize its facilities for AI services while negotiating the buyout. However, Toussi believes Core Scientific can independently achieve a transformation similar to CoreWeave’s. In his opposition letter, he highlighted the rising valuations of Core Scientific’s peers in the booming AI infrastructure sector, questioning the fairness of a bid valued at just $16.40 per share.
As the acquisition was declined, Core Scientific’s stock experienced a boost, and its market capitalization now stands at $6.6 billion. This rejection reflects a growing trend where investors resist acquisition offers in hopes of securing more lucrative deals, indicating potential signs of an AI bubble.
In other news, CoreWeave has continued its expansion efforts by acquiring Marimo, a competitor specializing in open-source Jupyter Notebooks, though the financial details of the deal remain undisclosed. Marimo, which has attracted approximately $5 million in funding according to PitchBook, provides vital tools for code, rich media, and explanatory text, essential for interactive data analysis and AI application development. This acquisition marks a strategic move for CoreWeave as it seeks to elevate its role from mere hosting to actively engaging in AI application development.
