CoreWeave Buys Core Scientific, but Investors Say āLOL Nopeā
In an epic $5 billion soap-opera merger brewing since July, AI cloud superhero CoreWeave aims to swallow data center rival Core Scientific, hoping to power up from 470 to 900 megawatts by 2025 ā thatās enough juice to light a fifth of NYC. But Trip Miller of Memphis-based Gullane Capital, holding a cool $200 million stake, just pulled the emergency brake, saying voting 'yes' means selling your shares at a discount. Meanwhile, Two Seas Capital slammed the $20.40 share price in an October 14 diatribe, begging shareholders to vote no on October 30. CEO Michael Intratorāprobably mastering a full-throated defense rather than karaokeāclaims the deal offers the 'best and final' shot at AI cloud domination despite stacking $11.2 billion debt and a margin dive from 20% to 2%. Analyst Gil Luria summed it up: CoreWeaveās selling $20 bills for $15, while wondering if this whole data center party shouldn't have even started.
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When your $200M stake says 'No thanks' to a $5B AI takeover, but the CEO calls it the 'best and final' offer like itās a clearance sale at a data center garage. Spoiler: profits crashed harder than your Wi-Fi during a Zoom call.
CoreWeaveās strategy: borrow billions, promise planetary-scale computing, and hope shareholders are too busy to notice margins dropped faster than a TikTok dance trend.
Buying your biggest landlord isnāt weird until shareholders realize theyāre paying *more* to own less. Core Scientific stockholders right now: 'Do I smell a bubble or just burnt circuits?'
Source: Businessinsider | Published: 10/17/2025 | Author: Daniel Geiger
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