Core View - CoreWeave, Inc. (NASDAQ:CRWV) is highlighted as a notable AI stock this week, with Morgan Stanley maintaining an "Equal Weight" rating ahead of its earnings report in November, indicating cautious optimism about the company's performance [1] Company Overview - CoreWeave is a cloud platform provider that supplies equipment for AI and other computing applications, positioning itself within the growing AI sector [1] Market Sentiment - Morgan Stanley anticipates a high likelihood of CoreWeave exceeding guidance and consensus expectations, but notes challenges in surpassing elevated investor expectations, which contributes to their "Equal Weight" stance [1] Investment Considerations - While CoreWeave shows potential as an investment, there are other AI stocks perceived to offer greater upside potential and lower downside risk, suggesting a competitive landscape in the AI investment space [2]

Core Scientific and CoreWeave Acquisition Overview - A significant shareholder in Core Scientific, Trip Miller of Gullane Capital, opposes the proposed acquisition by CoreWeave, indicating he would vote against it in the upcoming shareholder meeting [1][2] - The acquisition, valued at approximately $5 billion, is critical for CoreWeave to sustain its rapid growth and manage rising costs [2][3] - Concerns have arisen regarding the undervaluation of Core Scientific due to fluctuations in stock prices, with the current offer reflecting a value below its market price [3][12] Shareholder Opposition - Two Seas Capital, holding about 6.3% of Core Scientific's stock, has publicly criticized the acquisition, stating it is not profitable enough for shareholders and urging a rejection in the upcoming vote [4][24] - Miller describes the deal structure as flawed, suggesting it undervalues Core Scientific shares compared to current trading prices [14][15] CoreWeave's Position - CoreWeave's CEO, Michael Intrator, defends the acquisition as the best option for Core Scientific shareholders, claiming it offers significant long-term value creation [5][6] - The acquisition is positioned as a strategic move to streamline operations and reduce costs, particularly in leasing data center space [21][22] Market Context and Financial Performance - CoreWeave has experienced rapid growth, achieving a market capitalization of $70 billion and significant revenue increases, but faces challenges with rising costs and declining operating margins [15][19] - The company reported a revenue of $1.2 billion in Q2, doubling year-over-year, but its operating margins fell from 20% to 2%, indicating profitability issues [19] - CoreWeave's debt has increased to $11.2 billion, raising concerns about high borrowing costs relative to its profit margins [20] Strategic Implications - The acquisition would allow CoreWeave to save approximately $10 billion in lease payments over 12 years by owning Core Scientific, which is crucial for its long-term business model [21][22] - Two Seas Capital argues that the initial offer undervalues Core Scientific's intrinsic and strategic value, suggesting that the company could be worth significantly more if left independent [24][25]

Core Viewpoint - Nvidia's holding concept stocks experienced a decline, with Coreweave, Applied Digital, and NEBIUS dropping over 7%, 9.4%, and 9.6% respectively [1] Group 1: Acquisition Details - Coreweave announced the acquisition of AI computing miner Core Scientific, based on a previously established all-stock agreement from July 7, emphasizing that the offer is "best and final" with no modifications [1] - The merger is presented as a secure and valuable path for future development, promising immediate premiums for shareholders and significant long-term growth potential [1] Group 2: Strategic Implications - Coreweave argues that if Core Scientific opts for independent operation, it would face substantial capital expenditures and execution risks [1] - The company is urging shareholders to support the transaction at the special shareholder meeting scheduled for October 30 [1]

CoreWeave表示，此次合并为双方未来发展提供了最安全且最具价值的路径，不仅能为股东带来即时溢 价，还具备显著的长期增长潜力。公司认为，如果Core Scientific选择独立运营，将面临巨额资本支出 与执行风险，因此呼吁股东在10月30日召开的特别股东大会上投票支持该交易。 周五，英伟达(NVDA.US)持仓概念股普跌，截至发稿，Coreweave(CRWV.US)跌超7%，Applied Digital(APLD.US)跌超9.4%，NEBIUS(NBIS.US)跌超9.6%。消息面上，Coreweave将按此前于7月7日达 成的全股票协议收购AI算力矿商Core Scientific(CORZ.US)，并强调该报价为"最佳且最终"，不会作出任 何修改。 ...

Two Seas Capital Logo NEW YORK, Oct. 17, 2025 /PRNewswire/ -- Two Seas Capital LP ("Two Seas" or "we"), an alternative investment management firm and one of the largest shareholders of Core Scientific, Inc. ("Core Scientific" or the "Company") (NASDAQ: CORZ), today issued a letter to shareholders in connection with its opposition to the Company's proposed sale to CoreWeave, Inc. ("CoreWeave") (NASDAQ: CRWV) on the terms announced on July 7, 2025. The full text of the letter is below. Continue Reading Access ...

Core Insights - The surge in demand for AI data center capacity has significantly benefited CoreWeave, leading to a substantial revenue backlog [1][7] - CoreWeave's revenue for Q2 2025 reached $1.2 billion, marking a 207% increase year-over-year, with a backlog of nearly $14 billion [7][10] - The company has secured major contracts with industry leaders such as OpenAI, Meta Platforms, and Nvidia, indicating strong future revenue potential [8][9] Company Overview - CoreWeave specializes in AI-focused data centers, operating 33 facilities powered by Nvidia's GPUs across the U.S. and Europe [5][6] - The GPU-as-a-service model allows customers to run AI workloads without the need for expensive hardware, enhancing cost efficiency [6] Growth Potential - CoreWeave's backlog has doubled in the first half of 2025, reflecting the high demand for AI cloud computing capacity [8] - The company is expected to convert its backlog into revenue as it expands its data center capacity, which currently stands at 470 megawatts with a contracted capacity of 2.2 gigawatts [11][12] Valuation and Market Position - CoreWeave's price-to-sales ratio is 19, which, while considered expensive, is significantly lower than Nvidia's valuation [16] - The anticipated growth trajectory suggests that CoreWeave could outperform consensus expectations, providing a solid long-term investment opportunity [15][19]

Core View - CoreWeave reaffirms its commitment to acquiring Core Scientific, emphasizing the financial benefits and strategic rationale for Core Scientific stockholders [1][2][6] Acquisition Details - CoreWeave entered into a definitive agreement to acquire Core Scientific in an all-stock transaction on July 7, 2025, which is positioned as the best path forward for Core Scientific stockholders, providing immediate premium value and long-term growth potential [2][4] - The acquisition is expected to create synergies through vertical integration, operational efficiencies, and expanded industry expertise, enhancing long-term value creation for shareholders [2][4] Response to Misleading Claims - CoreWeave addresses misleading statements made by Two Seas Capital regarding the acquisition, asserting that their offer is final and will not be modified [3][4] - The company argues that Core Scientific's standalone value-creation plan is riskier compared to the proposed acquisition, which mitigates significant execution risks and capital expenditure challenges [4][6] - CoreWeave highlights that its partnership has already led to a ~150% increase in Core Scientific's stock price over the 13 months prior to the acquisition announcement, compared to ~25% for peers [4][5] Market Position and Future Outlook - CoreWeave is confident that no alternative buyer can match its scale and ability to unlock value from Core Scientific's assets, reinforcing the strategic importance of the acquisition [5][9] - The upcoming Special Meeting on October 30, 2025, will allow stockholders to vote on the transaction, with CoreWeave urging them to support the merger proposal [7][8]

Core Viewpoint - CoreWeave has appointed Jon Jones as its first Chief Revenue Officer to lead the company's global revenue organization and focus on scaling products and sales for its next growth phase [1][4]. Leadership and Experience - Jon Jones is a recognized leader in the AI industry with over two decades of experience in technology and business expansion, having held significant roles at Amazon [2][4]. - His previous positions include Global Head of Startups and Venture Capital at Amazon, where he was responsible for global service expansion and AI innovation [2]. Company Growth and Strategy - CoreWeave is experiencing hypergrowth and aims to enhance its leadership team to tackle the complexities of upcoming opportunities [4]. - The company has established a strong Go-To-Market team, which has contributed to its current market position as a leading cloud provider for AI [3][4]. - CoreWeave continues to grow rapidly through both organic expansion and acquisitions, with recent additions like Weights & Biases, OpenPipe, and Monolith to strengthen its technology stack [4]. AI Ecosystem Support - CoreWeave Ventures is an initiative that supports independent founders and startups in the AI ecosystem by providing resources such as capital investment and technical collaboration [5]. Company Overview - CoreWeave is positioned as "The Essential Cloud for AI," providing a platform that combines superior infrastructure performance with technical expertise to accelerate AI innovation [7]. - The company was established in 2017 and completed its public listing on Nasdaq (CRWV) in March 2025 [7].

Core Viewpoint - The discussion emphasizes the critical need for power in the context of expanding data centers, particularly in Texas, and highlights the potential of photonics and quantum computing to address these challenges [1][4][6]. Power Demand and Supply - Open Air requires 20 gigawatts of power, costing $16 billion for every 2 gigawatts [1] - Texas is experiencing a grid problem, complicating the expansion of data centers [3] - Oracle's co-CEOs noted that the challenge lies in supply rather than demand, as data centers cannot be built quickly enough to meet the growing needs [4] Photonics and Quantum Computing - Cohere is focused on photonics for quantum computing, which adds complexity to the power requirements [6] - The company has launched a strategy called macro cycle opportunities, targeting themes such as space, robotics, quantum, and nuclear, all integrated with AI [6] Investment Strategies - Quanta Services has a $36 billion backlog for modernizing existing power grids [8] - The portfolio construction includes established leaders (40-50%), enablers (20-25%), and speculative names (10-20%) to mitigate risk [10] Market Dynamics - The expectation for transformation in technology is significant, with predictions of more change in the next decade than in the last century [9] - Meta's pivot to AI and its impact on revenue generation remains uncertain, despite attracting high-level talent [14][15]

Core Insights - The article discusses the construction of a large data center complex by Poolside in West Texas, which is supported by Nvidia and Coreweave, highlighting the strategic importance of energy resources in the region [1][2][4] - Poolside is focused on artificial intelligence and aims to achieve Artificial General Intelligence (AGI), with backing from venture capitalists and financial institutions [3][4] - There is a growing demand for energy to support data centers, with a focus on using natural gas combined with renewable energy sources to meet this demand [9] Industry Trends - The current landscape shows a significant increase in investment and interest in sectors related to energy, computing, and artificial intelligence, indicating a potential bubble behavior in the market [5][6] - The article emphasizes the importance of building essential infrastructure responsibly, rather than speculatively, to support the growing needs of AI and data processing [6][8] - The bottleneck in the industry is not just land and power access, but also the incremental delivery of data centers and the intelligence required for businesses [9]