Core Scientific Shares Sink 15% as Microsoft Reduces CoreWeave Partnership

Microsoft’s AI cloud strategy shift impacts key supplier ahead of IPO.

Core Scientific (CORZ) shares tumbled 15% in pre-market trading Thursday following reports that Microsoft (MSFT) is scaling back its commitments with CoreWeave, a cloud computing provider that recently filed for an initial public offering (IPO).

Last month, Core Scientific unveiled a $1.2 billion data center expansion plan in partnership with CoreWeave. Meanwhile, CoreWeave is seeking to raise $4 billion in its upcoming IPO, targeting a $35 billion valuation.

According to the Financial Times, CoreWeave has struggled with delivery delays, prompting Microsoft to reduce some of its commitments, though the tech giant remains a major client.

Microsoft accounts for 62% of CoreWeave’s revenue and has pledged over $10 billion in spending on the firm’s services through 2030. Despite generating $1.9 billion in revenue in 2024, CoreWeave continues to operate at a loss and depends heavily on Nvidia’s (NVDA) AI chips.

Microsoft’s decision reflects broader adjustments in its AI cloud strategy but does not signal a complete exit from its investment in CoreWeave.