CoreWeave’s proposed $9 billion acquisition of data center provider Core Scientific (NASDAQ:CORZ) is facing a potential shareholder revolt, as some of the target firm’s top investors argue the deal undervalues the company and plan to vote against it unless the terms are improved.
According to a Financial Times report, some major Core Scientific shareholders are preparing to oppose the all-stock deal, threatening to upend a major consolidation in the AI infrastructure space. The vote, which has not yet been scheduled, is expected to take place this autumn.
The proposed takeover highlights the intense race among technology firms to secure the vast data center capacity and power required to meet the surging demand for artificial intelligence. CoreWeave, a rapidly growing provider of cloud computing for AI, first made an unsolicited offer for Core Scientific in June 2024, which was rejected for undervaluing the business.
While a revised, higher offer was subsequently announced last month, it appears it still may not be enough to win over key investors who believe the data center landlord is worth more on its own.
CORZ: A Bull or Bear Market Play?
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