AI giant CoreWeave (CRWV, Financial) is looking to buy Core Scientific (CORZ, Financial) for about $9 billion—granting themselves an extra 1.3 GW of data-center power (840 MW tied up in HPC contracts plus 500 MW for crypto mining), with more than another gigawatt waiting in the wings.
What really gets investors excited is the cost side: by folding Core Scientific's sites into their own network, CoreWeave (CRWV, Financial) can wipe out over $10 billion in future lease bills spread across the next dozen years.
They're also aiming to streamline operations and snag around $500 million in annual run-rate savings by the end of 2027.
Do the math on that at a 21% tax rate, and you're looking at roughly a 5% boost to 2028 earnings per share—all before you even think about redeploying excess capacity or selling off bits of the business.
Analyst firm Macquarie still has a “neutral” call on CoreWeave with a $65 price target—so they see upside, but they're not shouting “buy” just yet. They're equally upbeat on Core Scientific itself, keeping an outperform rating and a $15 target on its stock.
Bottom line: if this deal goes through late next year, it could be a real game-changer for both companies—just don't forget it still needs shareholder and regulatory sign-off.
