CoreWeave’s $5 billion gamble hits a wall

Core Insights - CoreWeave has rapidly transitioned from a niche GPU provider to a prominent player in the AI sector, with its IPO priced at $40 in late March and significant demand from major tech customers [1] - The company is pursuing growth through acquisitions, exemplified by its merger with Core Scientific, aimed at enhancing its computational capacity and infrastructure [2] Merger Details - The merger between CoreWeave and Core Scientific is valued at approximately $5 billion, with an all-stock offer that values Core Scientific (CORZ) at around $20.40 per share [5] - The upcoming shareholder vote on October 30 is critical, as there is significant opposition from major shareholders who believe the merger undervalues the company [4][5] Shareholder Concerns - Two Seas Capital, the largest active holder of CORZ, has publicly opposed the merger, arguing that the valuation is not favorable [5] - The original bid of $20.40 per share is now perceived as closer to $17 due to recent price fluctuations, leading to concerns about the deal's viability [6]