Core Scientific Shares Tumble 15% as Microsoft Scales Back CoreWeave Deal
AI cloud provider CoreWeave faces challenges as key client reduces commitments.
Shares of bitcoin (BTC) mining firm Core Scientific (CORZ) plunged 15% in pre-market trading Thursday after reports surfaced that Microsoft (MSFT) has scaled back certain agreements with cloud computing firm CoreWeave, which is preparing for a public listing.
Core Scientific previously announced a $1.2 billion data center expansion in collaboration with CoreWeave. Meanwhile, CoreWeave recently filed for an initial public offering (IPO), targeting a $4 billion raise at a $35 billion valuation.
According to a report from the Financial Times, CoreWeave has struggled with delivery delays, prompting Microsoft to adjust its commitments—though the tech giant remains a key partner.
Microsoft accounts for 62% of CoreWeave’s revenue and has pledged over $10 billion in spending on its services by 2030. While CoreWeave experienced rapid growth, generating $1.9 billion in revenue in 2024, it continues to post significant losses. The firm heavily depends on Nvidia (NVDA) AI chips and has secured $14.5 billion in debt and equity funding.
Microsoft’s decision reflects its evolving AI infrastructure strategy, but the company remains committed to sizable investments in the sector.
