Core Scientific Shares Drop Amid Microsoft Agreement Changes

According to CoinDesk, shares of bitcoin miner Core Scientific (CORZ) fell by 15% in pre-market trading on Thursday following reports that Microsoft (MSFT) has scaled back some agreements with CoreWeave, a cloud computing firm soon to be listed. Core Scientific had previously announced plans for a $1.2 billion data center expansion in collaboration with CoreWeave. This week, CoreWeave filed for an initial public offering, aiming to raise $4 billion at a valuation of $35 billion. CoreWeave, which provides artificial intelligence (AI) computing power to Microsoft, has encountered delivery issues and missed deadlines, prompting Microsoft to reduce its commitments. Despite these challenges, Microsoft remains a significant partner for CoreWeave. The tech giant accounts for 62% of CoreWeave’s revenue and has committed over $10 billion in spending on its services by 2030. CoreWeave has experienced rapid growth, generating $1.9 billion in revenue in 2024, although it has also reported substantial losses. The company heavily depends on Nvidia’s (NVDA) AI chips and has raised $14.5 billion through debt and equity. Microsoft's decision to adjust its agreements with CoreWeave aligns with its evolving AI infrastructure strategy, yet it continues to invest significantly in the sector. U.S. President Donald Trump has not commented on these developments, which reflect broader trends in the technology and AI industries.