Core Scientific Shares Slide 15% as Microsoft Reduces CoreWeave Commitments
AI cloud provider’s struggles ripple through Bitcoin mining sector.
Core Scientific (CORZ) shares dropped 15% in pre-market trading Thursday following reports that Microsoft (MSFT) has reduced its commitments to AI cloud computing firm CoreWeave.
CoreWeave, which recently announced a $4 billion IPO at a $35 billion valuation, had been working with Core Scientific on a $1.2 billion data center expansion. However, delays in meeting key delivery milestones have led Microsoft to scale back its agreements, according to the Financial Times.
Despite the cutback, Microsoft remains CoreWeave’s dominant client, contributing 62% of its revenue and pledging over $10 billion in spending through 2030.
CoreWeave, which depends heavily on Nvidia (NVDA) AI chips, generated $1.9 billion in revenue in 2024 but continues to operate at a loss. The latest move reflects Microsoft’s evolving AI strategy while still maintaining a substantial partnership with CoreWeave.
