CoreWeave's acquisition of Core Scientific adds 1.3 gigawatts of datacenter capacity essential for AI operations. Power limitations often hinder datacenter growth. With Core Scientific, CoreWeave reduces reliance on colocation and improves profit margins by owning facilities. Core Scientific operates ten datacenters, predominantly serving CoreWeave's GPU leasing needs, with a significant portion of its capacity currently used for bitcoin mining. The future of the mining facilities is uncertain, with options for repurposing dedicated capacity for AI or divesting it altogether being considered.
Power has become a major constraint for datacenter operators looking to capitalize on the ongoing AI boom. By absorbing Core Scientific, CoreWeave sidesteps this headache while also curbing its reliance on colocation partners.
CoreWeave's business model revolves around leasing massive quantities of Nvidia GPUs acquired in large part through debt financing. However, without datacenters to house all those servers and adequate power to run them, the whole enterprise grinds to a halt.
Collection
[
|
...
]