Core Scientific Shares Plummet 15% After Microsoft Scales Back CoreWeave Deal

Core Scientific Stock Falls 15% After Microsoft Reduces CoreWeave Commitments

Microsoft’s shift in AI strategy impacts cloud computing firm ahead of IPO.

Core Scientific (CORZ) shares dropped 15% in pre-market trading Thursday following reports that Microsoft (MSFT) is scaling back agreements with cloud computing provider CoreWeave, which is preparing for its stock market debut.

Core Scientific had recently announced a $1.2 billion data center expansion with CoreWeave. Meanwhile, CoreWeave has filed for an initial public offering (IPO), aiming to raise $4 billion at a $35 billion valuation.

According to the Financial Times, CoreWeave has been dealing with delivery delays, leading Microsoft to adjust its commitments, though it remains a major partner.

Microsoft contributes 62% of CoreWeave’s revenue and has pledged more than $10 billion in spending on its services through 2030. Despite rapid growth—reporting $1.9 billion in revenue in 2024—CoreWeave continues to operate at a loss and remains reliant on Nvidia (NVDA) AI chips. The firm has raised $14.5 billion in debt and equity to fund its expansion.

Microsoft’s revised commitments reflect shifting priorities in its AI infrastructure, but its long-term investment in the sector remains strong.