CoreWeave’s IPO and Its Potential Effect on Core Scientific: Analysts Discuss

CoreWeave’s IPO: What It Means for Core Scientific

CoreWeave’s move toward becoming a publicly traded company could be a positive development for Core Scientific, but it may not be the most crucial event shaping the company’s future.

The AI infrastructure firm filed for an initial public offering (IPO) on March 3, solidifying its position as a dominant player in artificial intelligence (AI) computing. CoreWeave has a deep partnership with Bitcoin (BTC) miner Core Scientific (CORZ), having entered into a multi-billion-dollar agreement for Core Scientific to build large-scale infrastructure supporting CoreWeave’s AI-driven operations. As CoreWeave’s biggest client, any changes in its business trajectory naturally raise questions about how Core Scientific will be affected.

“CoreWeave’s IPO is likely to influence Core Scientific’s prospects,” Wolfie Zhao, head of research at TheMinerMag, told CoinDesk. “A successful IPO with strong revenue growth would validate Core Scientific’s role as a key infrastructure provider, ensuring a stable and expanding revenue stream from hosting CoreWeave’s GPUs.”

However, Zhao also warned that if the AI sector encounters a downturn or demand for high-performance computing weakens, Core Scientific could face similar headwinds due to its increasing reliance on AI-related services.

Some analysts believe CoreWeave’s recent $12 billion deal with OpenAI may have an even greater impact than its IPO. A March 12 report from investment bank Canaccord Genuity noted that the deal allows CoreWeave to reduce its dependency on Microsoft, which currently generates about two-thirds of its revenue. This diversification could be beneficial for Core Scientific, given its deep ties to CoreWeave’s business.

Investment firm H.C. Wainwright, in a March 11 note, dismissed speculation that CoreWeave might sever its contract with Core Scientific. “There’s little reason for CoreWeave to walk away from this partnership,” the firm’s analysts wrote. “The two companies have a long history of collaboration, and Core Scientific continues to expand its infrastructure to support CoreWeave’s AI needs.”

Core Scientific’s leadership remains optimistic about CoreWeave’s transition to a public company. “We’re proud to support CoreWeave on its path to becoming a publicly traded firm and look forward to its continued success,” a Core Scientific spokesperson told CoinDesk. “Seeing our clients grow is the ultimate reward, and we’re eager to scale alongside them as they reach new heights.”