(Bloomberg) — CoreWeave Inc. won’t increase its $9 billion offer for data center provider Core Scientific Inc., despite opposition to the deal from major shareholders.
“We’re very comfortable that the way that we have priced it is appropriate for us,” Chief Executive Officer Michael Intrator said on stage at Bloomberg Technology in London on Tuesday. “If there’s someone else that would like to step in, they can step in.”
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The company is loading up on acquisitions to boost its cloud capacity and add new products and services. CoreWeave in July agreed to buy Core Scientific Inc. for $9 billion and has made several smaller purchases in areas like reinforcement learning and industrial AI.
Ahead of a shareholder vote on the deal, some large Core Scientific investors have announced their opposition to CoreWeave’s bid, saying the valuation is too low. On Monday, proxy adviser Institutional Shareholder Services Inc. recommended that Core Scientific investors reject the offer.
“We continue to think it makes sense. It will go to a vote, but you won’t see us bump our price or increase our price,” added Intrator.
CoreWeave, which supplies AI computing power to companies like OpenAI and Microsoft Corp., has been working to diversify its customer base, adding a deal with Meta Platforms Inc. worth as much as $14.2 billion last month. The Livingston, New Jersey-based company said Microsoft accounted for more than 70% of its sales in the June quarter.
Intrator said he expects new customers to come into the market so the company can diversify. “But it’s not going to be 20,000 customers building foundation models,” he said. “That’s just not how this works.”
CoreWeave is among an emerging group of so-called neoclouds, businesses that rent out access to leading AI chips. Its competitors include Nebius Group NV and Nscale Global Holdings Ltd. CoreWeave’s stock has risen more than 200% since its March initial public offering as the race among major technology companies to build the most advanced AI models sends computing demand soaring.
The company also struck a $6.3 billion deal with shareholder Nvidia Corp., in which the chipmaker agreed to buy any excess capacity not used by its customers. The agreement helps shore up CoreWeave’s financial position and mitigates the risk of unsold capacity as the cloud providers rush to expand.
Tech giants have been pouring billions of dollars into data centers and advanced AI chips even as most artificial intelligence companies, including CoreWeave, remain unprofitable. The spending frenzy has fueled concern about a trillion-dollar AI bubble.
(Bloomberg) — CoreWeave Inc. won’t increase its $9 billion offer for data center provider Core Scientific Inc., despite opposition to the deal from major shareholders.
“We’re very comfortable that the way that we have priced it is appropriate for us,” Chief Executive Officer Michael Intrator said on stage at Bloomberg Technology in London on Tuesday. “If there’s someone else that would like to step in, they can step in.”
Most Read from Bloomberg
The company is loading up on acquisitions to boost its cloud capacity and add new products and services. CoreWeave in July agreed to buy Core Scientific Inc. for $9 billion and has made several smaller purchases in areas like reinforcement learning and industrial AI.
Ahead of a shareholder vote on the deal, some large Core Scientific investors have announced their opposition to CoreWeave’s bid, saying the valuation is too low. On Monday, proxy adviser Institutional Shareholder Services Inc. recommended that Core Scientific investors reject the offer.
“We continue to think it makes sense. It will go to a vote, but you won’t see us bump our price or increase our price,” added Intrator.
CoreWeave, which supplies AI computing power to companies like OpenAI and Microsoft Corp., has been working to diversify its customer base, adding a deal with Meta Platforms Inc. worth as much as $14.2 billion last month. The Livingston, New Jersey-based company said Microsoft accounted for more than 70% of its sales in the June quarter.
Intrator said he expects new customers to come into the market so the company can diversify. “But it’s not going to be 20,000 customers building foundation models,” he said. “That’s just not how this works.”
CoreWeave is among an emerging group of so-called neoclouds, businesses that rent out access to leading AI chips. Its competitors include Nebius Group NV and Nscale Global Holdings Ltd. CoreWeave’s stock has risen more than 200% since its March initial public offering as the race among major technology companies to build the most advanced AI models sends computing demand soaring.
The company also struck a $6.3 billion deal with shareholder Nvidia Corp., in which the chipmaker agreed to buy any excess capacity not used by its customers. The agreement helps shore up CoreWeave’s financial position and mitigates the risk of unsold capacity as the cloud providers rush to expand.
Tech giants have been pouring billions of dollars into data centers and advanced AI chips even as most artificial intelligence companies, including CoreWeave, remain unprofitable. The spending frenzy has fueled concern about a trillion-dollar AI bubble.
