CoreWeave just grabbed crypto mining company Core Scientific for nine billion dollars. The cloud computing giant struck an all-stock deal that gives Core Scientific shareholders a piece of the action. Each shareholder receives about one-eighth of a CoreWeave share for every share they hold. The purchase helps CoreWeave expand its massive computer power network across America. This move puts CoreWeave closer to controlling its entire business operation from top to bottom.
The company makes money renting out fancy NVIDIA computer chips through the internet. These powerful processors help businesses run artificial intelligence programs and crunch massive amounts of data. CoreWeave forces customers to pay upfront and commit to long contracts whether they use the computers or not. Their special partnership with NVIDIA lets them offer the newest and fastest chips before competitors can. Most of their income comes from customers locked into four-year deals.
CoreWeave stretches out the cost of their expensive computer equipment over six years instead of four like rival company Nebius does. This accounting trick makes their profits look bigger and helps them borrow more money. The longer timeline keeps the equipment value higher on paper when banks demand collateral for loans. Critics question whether this practice gives investors a true picture of company performance. Supporters argue customers already cover these costs through their contracts.
The Core Scientific purchase saves CoreWeave ten billion dollars in rental fees over twelve years. The deal adds 840 megawatts of computing power and 500 megawatts from crypto mining operations. Another full gigawatt sits ready for future expansion projects.
The company makes money renting out fancy NVIDIA computer chips through the internet. These powerful processors help businesses run artificial intelligence programs and crunch massive amounts of data. CoreWeave forces customers to pay upfront and commit to long contracts whether they use the computers or not. Their special partnership with NVIDIA lets them offer the newest and fastest chips before competitors can. Most of their income comes from customers locked into four-year deals.
CoreWeave stretches out the cost of their expensive computer equipment over six years instead of four like rival company Nebius does. This accounting trick makes their profits look bigger and helps them borrow more money. The longer timeline keeps the equipment value higher on paper when banks demand collateral for loans. Critics question whether this practice gives investors a true picture of company performance. Supporters argue customers already cover these costs through their contracts.
The Core Scientific purchase saves CoreWeave ten billion dollars in rental fees over twelve years. The deal adds 840 megawatts of computing power and 500 megawatts from crypto mining operations. Another full gigawatt sits ready for future expansion projects.
