What's the Impact of CoreWeave's IPO on Core Scientific? Analysts Have Mixed Opinions
Anything that benefits CoreWeave will likely benefit Core Scientific, too, although the IPO may not be the most significant event in recent memory.
Tom Carreras | Edited by Steven Alpher on 19 Mar 2025 15:44 UTC
Key points:
- CoreWeave filed for an IPO on March 3.
- Core Scientific could benefit from a successful CoreWeave IPO.
- CoreWeave's new $12 billion deal with OpenAI could be even more significant.
CoreWeave, one of the leading players in the artificial intelligence (AI) space, filed for an initial public offering (IPO) on March 3.
The company has been actively collaborating with Bitcoin (BTC) miner Core Scientific (CORZ); the two organizations have signed a multi-billion dollar contract to build hundreds of megawatts of infrastructure for CoreWeave to run its AI services. In fact, CoreWeave is Core Scientific’s largest customer.
The question arises: what impact will the CoreWeave IPO have on Core Scientific?
“CoreWeave’s IPO will likely have a corresponding impact on Core Scientific,” Wolfie Zhao, head of research at TheMinerMag, told CoinDesk. “If CoreWeave’s IPO is successful and the company maintains a high revenue growth rate in the coming years, it will solidify Core Scientific’s status as a trusted infrastructure provider, providing stable revenue from hosting CoreWeave’s GPUs.”
“However, if the AI market experiences a downturn or demand for high-performance computing weakens, Core could face similar challenges as its business increasingly relies on the broader AI ecosystem,” Zhao added.
The IPO could be a smaller deal than CoreWeave’s new $12 billion deal with AI giant OpenAI, analysts at investment bank Canaccord Genuity suggested in a March 12 report. The deal would allow CoreWeave to diversify its revenues away from its reliance on Microsoft, which currently accounts for about two-thirds of the company’s revenue. Such diversification should ultimately benefit Core Scientific, as CoreWeave is the firm’s largest customer.
This push for diversity is unlikely to hurt the relationship between CoreWeave and Core Scientific, analysts at investment firm HC Wainwright wrote on March 11. CoreWeave’s IPO is another sign that rumors of CoreWeave trying to break its contract with Core Scientific are untrue. “What the hell does this make sense to CoreWeave from 20,000 feet up?” they wrote. Not only do the two companies have a long history of working together, but they also regularly strike new deals to have Core Scientific provide even more infrastructure for the AI Hyperscaler.
As for Core Scientific, the company’s management is “excited” about the potential IPO, a spokesperson told CoinDesk. “We’re proud to be a part of their journey to becoming a public company and look forward to supporting their continued success. There’s nothing more rewarding than watching our customers grow, and we’re excited to continue scaling alongside them as they reach new heights.”
