Core Scientific Declines 15% as Microsoft Reduces CoreWeave Partnership Scope

Core Scientific Plunges 15% as Microsoft Scales Back CoreWeave Deal

Tech giant adjusts AI cloud commitments, triggering sell-off in mining stock.

Shares of Core Scientific (CORZ) fell 15% in pre-market trading Thursday after reports surfaced that Microsoft (MSFT) has scaled back certain agreements with cloud provider CoreWeave, a key partner in the AI infrastructure space.

CoreWeave, which recently announced plans to go public with a $4 billion IPO at a $35 billion valuation, had been collaborating with Core Scientific on a $1.2 billion data center expansion. However, supply chain issues and missed delivery targets have reportedly led Microsoft to reduce its commitments, according to the Financial Times.

Despite the adjustment, Microsoft remains CoreWeave’s largest customer, accounting for 62% of its revenue and committing over $10 billion in spending through 2030.

CoreWeave, which heavily relies on Nvidia (NVDA) AI chips, generated $1.9 billion in revenue last year but continues to post losses. Microsoft’s recalibration highlights the evolving nature of its AI cloud strategy while maintaining a significant partnership with CoreWeave.