CoreWeave’s IPO: A Game Changer for Core Scientific?

CoreWeave’s journey toward becoming a publicly traded company could bring significant opportunities for Core Scientific, but it might not be the most crucial development shaping its future.

On March 3, CoreWeave, a key player in artificial intelligence (AI) computing, officially filed for an initial public offering (IPO). The company maintains a strong relationship with Bitcoin (BTC) miner Core Scientific (CORZ), having signed a multi-billion-dollar agreement for Core Scientific to develop large-scale infrastructure supporting CoreWeave’s AI services. Given that CoreWeave is Core Scientific’s largest client, its IPO raises questions about potential impacts on the mining firm.

“CoreWeave’s IPO will likely have ripple effects on Core Scientific,” Wolfie Zhao, head of research at TheMinerMag, told CoinDesk. “If CoreWeave’s public debut is successful and revenue growth remains strong, Core Scientific stands to benefit from a steady and potentially expanding revenue stream as a trusted infrastructure provider.”

However, Zhao noted that potential challenges in the AI market, including fluctuations in demand for high-performance computing, could introduce risks for Core Scientific, given its increasing exposure to the sector.

While the IPO is significant, analysts at Canaccord Genuity suggest that CoreWeave’s $12 billion agreement with OpenAI may be even more impactful. In a March 12 report, they highlighted that the deal allows CoreWeave to reduce its dependency on Microsoft, which currently generates around two-thirds of its revenue. This diversification should, in turn, benefit Core Scientific, given its deep ties to CoreWeave’s infrastructure needs.

Analysts at H.C. Wainwright also dismissed speculation that CoreWeave might sever its contract with Core Scientific. “There’s little strategic reason for CoreWeave to abandon this partnership,” they noted in a March 11 analysis. “The companies have a long-standing collaboration, and Core Scientific continues to scale its infrastructure to meet CoreWeave’s AI demands.”

Core Scientific’s leadership remains highly optimistic about CoreWeave’s IPO. “We’re excited to be part of CoreWeave’s journey to becoming a public company and look forward to their continued success,” a Core Scientific spokesperson told CoinDesk. “Supporting our clients’ growth is our top priority, and we’re eager to scale alongside them as they achieve new milestones.”