CoreWeave - Core Scientific: Strategic Masterstroke or Operational Overreach
PLUS: Former AWS Executive Building Something New
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Venture Radar
CoreWeave’s acquisition of Core Scientific marks a significant strategic pivot from an asset-light cloud compute model to an infrastructure-heavy ownership approach. This move reflects a clear recognition that control over physical data center capacity and power infrastructure is becoming a competitive moat in the AI compute market. By bringing Core Scientific’s extensive facilities in-house, CoreWeave eliminates its reliance on external leases, which not only improves its long-term cost structure but also insulates the business from future volatility in data center pricing and power availability.
From a strategic perspective, this vertical integration secures critical inputs needed to support the exponential growth of AI workloads. As demand for high-performance computing accelerates, access to scalable and reliable power infrastructure becomes a bottleneck for cloud providers. Owning these assets positions CoreWeave to better guarantee capacity availability for customers and to negotiate from a position of strength with enterprise clients and hyperscalers looking for dedicated GPU compute resources.
Operational Complexity and Valuation Reframing
However, this strategic bet introduces material execution risks. CoreWeave is transitioning from operating as a specialised GPU cloud platform to managing large-scale data center operations, which involves competencies in energy procurement, facility management, maintenance, and physical security. This operational complexity is far removed from its traditional business strengths and may strain management capacity in the short term.
From a market positioning lens, the acquisition alters CoreWeave’s valuation profile. Investors who previously valued the company as a high-margin cloud software provider may now recalibrate it closer to an infrastructure operator or data center REIT. This could lead to multiple compression, particularly if profitability gains from ownership are offset by higher operational costs and capital expenditure requirements.
Another analytical consideration is customer concentration risk. With a significant portion of revenue dependent on a single large customer, CoreWeave must manage counterparty risks carefully, especially as it takes on a more leveraged and capital-intensive business model. Any disruption in this customer relationship could have outsized impacts on cash flow and debt servicing capacity post-acquisition.
Geeks of the Week
Startup Name: David AI
Geography: US
One-liner: The data layer for audio AI.
Founder(s) Background: Chief of Staff at Scale AI, Engineering Manager at Scale AI.
Thoughts:
They addresses a key need in AI development by focusing on producing studio-grade, structured audio datasets tailored for speech and conversational AI training. Their approach emphasises controlled collection and dataset design, which could offer higher utility for model developers compared to general-purpose audio data sources.
Their workflow-driven data production process, moving from hypothesis to iterative dataset refinement, demonstrates operational discipline that may appeal to AI labs needing consistent, reliable training data. This positions them to potentially integrate into workflows where high-quality, domain-specific audio inputs are critical.
Strategically, as AI shifts towards multimodal capabilities, WithDavid.ai’s focus on purpose-built audio datasets places it in an interesting niche. It could become a valuable partner for AI teams seeking to enhance model performance with more targeted, structured audio data rather than relying solely on open-source or crowd-sourced alternatives.
Founder(s) building in stealth
Deals of the Week
Ryft - Raised $8M in seed funding co-led by Index Ventures and Bessemer, targeting improved data management and analytics compatibility with platforms like Apache Iceberg and Snowflake.
Centivax - Secured $45M Series A to develop a universal mRNA flu vaccine, led by Future Ventures with backing from organizations like the Gates Foundation.
Peec AI - Closed a €7M seed round to enhance its AI-powered search analytics platform and begin U.S. expansion.
MediShout - Raised $9M Series A to upscale its healthtech platform that connects hospital staff and suppliers for operational efficiency.
Build Concierge - Closed a $5.1M seed round to expand its AI-driven customer engagement platform for service businesses.
Notable Mergers and Acquisitions
CoreWeave to acquire Core Scientific
CoreWeave announced a $9 billion all-stock acquisition of data-center provider Core Scientific, set to close in Q4 2025. The deal transfers approximately 1.3 GW of data-center power capacity - including repurposed crypto-mining sites - under CoreWeave’s direct control. It eliminates future lease obligations and is expected to yield significant cost savings while enabling vertical integration and infrastructure scale-up.Eudia acquires Johnson Hana
Eudia, backed by General Catalyst, acquired legal-tech provider Johnson Hana using part of its $75M strategic fund. The deal enhances Eudia’s AI-powered legal services with seasoned legal expertise.Thoma Bravo acquires Olo
Thoma Bravo, a major software-focused private equity firm, agreed to take restaurant-tech platform Olo private in an all-cash deal valued around $2 billion - marking another strategic consolidation in restaurant operations tech.Intuit acquires Relevvo
Intuit bought Seattle-based marketing startup Relevvo to bring its marketing automation and data-driven engagement tools in-house. Terms were undisclosed, but the move bolsters Intuit’s mid-market customer outreach .
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