The firm, which leases its GPU-stacked server farms to outfits like OpenAI and Microsoft, reckons the deal will boost its potential capacity by more than two gigawatts. That’s nearly half the scale of OpenAI’s whopper Stargate supercomputer project. But the move is more about dodging a long-term cash drain.

CoreWeave had already inked a $10 billion leasing agreement with Core Scientific for the same data centres. Those contracts were “take or pay” which meant it would be on the hook for the full amount regardless of usage. Swallowing the supplier is its way of dodging that awkward invoice.

From a distance, it’s a crafty bit of financial sleight of hand. CoreWeave has sweet-talked Core Scientific’s shareholders into handing over future earnings in exchange for stock that’s riding a wave of market euphoria. CoreWeave’s shares have quadrupled since the float and the market’s got more froth than a barista on speed.

The real driver is the cash burn. CoreWeave is haemorrhaging billions more than it brings in and is patching the gap with debt that’s running at 10 per cent or more. Equity might seem free but shareholders will be expecting something closer to 15 per cent returns. As long as the market keeps pumping the stock, no one’s complaining.

The acquisition lets CoreWeave tap into Core Scientific’s balance sheet, padding its own reserves by about 50 per cent as of March figures. That new bulk could be used to refinance existing debt at lower interest rates, something the company says it’s already planning.

No one is admitting that the AI data centre craze might cool off, nor is anyone hinting that customers like Microsoft might be weighing their options. But if the gold rush does stall, this deal will start looking less like bullish expansion and more like a savvy hedge.