Ignoring shareholders' opposition, CoreWeave (CRWV.US) insists on a $9 billion acquisition of Core Scientific “no markup”

The Zhitong Finance App learned that despite major shareholders' opposition to the acquisition deal, CoreWeave (CRWV.US) said it would not raise its $9 billion quote for data center service provider Core Scientific Inc. The company's CEO Michael Intrator (Michael Intrator) said on Tuesday, “We are convinced that the current offer is reasonable for the company.” “If there are other companies willing to step in, let them come.”

CoreWeave is expanding its cloud service capacity and adding new products and services through multiple acquisitions. In July of this year, the company agreed to acquire Core Scientific for $9 billion, and has also completed a number of small-scale acquisitions in fields such as enhanced learning and industrial artificial intelligence.

Prior to the shareholder vote on the deal, some of Core Scientific's large investors had publicly objected to CoreWeave's offer, saying the valuation was too undervalued. On Monday, Institutional Shareholder Services Inc. (Institutional Shareholder Services Inc.), a voting advisory agency, advised Core Scientific's investors to reject the offer.

“We still think this deal makes sense. The deal will ultimately be decided by shareholders, but no one will see us increase our offer, nor increase the price.” Interlator added.

CoreWeave provides artificial intelligence computing power support to companies such as OpenAI and Microsoft (MSFT.US), and is currently working to diversify its customers. Last month, the company reached a cooperation agreement worth up to 14.2 billion US dollars with Meta Platforms (META.US). The Livingston, New Jersey-based company said Microsoft contributed more than 70% of its sales in the second quarter of this year.

Interlator said he expects new customers to enter the market to help the company diversify its customers. “But not every 20,000 customers will develop the basic model,” he said. “Things simply won't develop this way.”

CoreWeave belongs to the emerging “new cloud service providers” (neoclouds) camp, that is, companies that exclusively rent out the right to use top AI chips. Its competitors include Nebius Group (NBIS.US) and Nscale Global Holdings. Since its initial public offering (IPO) in March of this year, CoreWeave's stock price has increased by more than 200% — behind this, large technology companies are fiercely competing to develop the most advanced AI models, driving a sharp rise in demand for computing power.

The company also reached an agreement worth $6.3 billion with shareholder Nvidia Inc. (NVDA.US): Nvidia agreed to buy CoreWeave's excess computing power not being used by customers. In the context of cloud service providers scrambling to expand, the agreement helps strengthen CoreWeave's financial position and reduce the risk of unsold computing power.

Although most AI companies, including CoreWeave, are still losing money, tech giants are still investing billions of dollars in data centers and advanced AI chips. This investment boom has raised market concerns about a “trillion-dollar AI bubble.”