CoreWeave (CRWV) on Thursday terminated its proposed acquisition of Core Scientific (CORZ) after its shareholders rejected an all-stock merger offer. CoreWeave tock fell on the announcement.
Core Scientific held a shareholder meeting Thursday morning. “Based on preliminary results, the proposal did not receive the necessary approval,” CoreWeave said. “As a result, the Agreement has been terminated.”
The deal was originally valued at $9 billion but CoreWeave stock has declined since the merger was announced in June.
The CoreWeave statement added: “We respect the views of Core Scientific stockholders and look forward to continuing our commercial partnership.”
On the stock market today, CoreWeave stock fell 5.6% to 132.11 in morning trading. Corz stock rose 3.5% to 21.50. In 2025, CoreWeave stock has advanced 135%. Corz stock is up 46%.
Third quarter earnings for CoreWeave stock are due Nov. 10. CoreWeave launched its initial public offering in late March.
Both CoreWeave and Core Scientific are among a wave of artificial intelligence “neoclouds” that includes Nebius (NBIS), Lambda and Nscale. Neoclouds build data centers designed from scratch for crunching AI workloads. Like CoreWeave, Crusoe rents out servers equipped with Nvidia (NVDA) AI accelerators.
CoreWeave’s stellar customer list includes OpenAI, Microsoft (MSFT) and Meta Platforms (META).
CoreWeave operates 33 data centers in the U.S. and Europe. Also, CoreWeave has preferred access to Nvidia’s graphic processing units. Its cloud offerings are optimized for training and inference required to perform AI tasks.
While some analysts project a big AI market opportunity for CoreWeave and other neoclouds, others fret about customer concentration and high debt.
CoreWeave Stock Technical Ratings
Meanwhile, CoreWeave stock owns a Composite Rating of 68 out of a best possible 99, according to IBD Stock Checkup. Also, CoreWeave stock has a relatively small float, making it more volatile. The Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
The IBD Methodology: How To Invest In Stocks While Managing Risks
Meanwhile, CoreWeave stock holds an Accumulation/Distribution Rating of B-plus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
Additionally, CoreWeave is among the top artificial intelligence stocks to watch. CoreWeave was founded as a cryptocurrency miner in 2017 before its move into cloud computing services.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, quantum computing, cybersecurity and cloud computing.
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