In the escalating race to dominate artificial intelligence infrastructure, a contentious $9 billion all-stock takeover bid by CoreWeave for Core Scientific has spotlighted a critical resource: electricity. Shareholders of Core Scientific, a bitcoin mining company turned data-center operator, are rebelling against the deal, arguing that their firm’s vast power assets are undervalued in an era where AI’s insatiable demand for energy makes electricity the new gold. The proposed acquisition, announced in July, would see CoreWeave, a rapidly growing AI cloud provider, absorb Core Scientific’s 1.3 gigawatts of power capacity across nine U.S. sites, a move aimed at securing direct control over the physical backbone of AI computing.

This battle underscores broader shifts in the tech sector, where companies are scrambling not just for chips and algorithms, but for the raw power to run them. CoreWeave, backed by heavyweights like Nvidia, has positioned itself as a key player in providing GPU-as-a-service, leasing high-performance computing to AI developers. By acquiring Core Scientific, it seeks to eliminate rental costs and vertically integrate, a strategy that could reshape how AI infrastructure is built and monetized.

The Power Struggle Intensifies: Why Electricity is AI’s Most Precious Commodity

Core Scientific’s shareholders, including major investor BlackRock, contend that the $9 billion valuation—pegging shares at about $5.75 each—fails to capture the premium on power in the AI boom. As reported in a recent article by Business Insider, dissenters argue that electricity access is now “the most valuable asset of all,” with data centers consuming energy at rates rivaling small cities. This pushback has delayed the deal, originally set to close by year-end, and highlights investor fears that Core Scientific’s assets could fetch far more in a standalone sale amid surging demand.

Analysts point to the deal’s origins in Core Scientific’s bankruptcy recovery last year, when it pivoted from crypto mining to AI hosting. CoreWeave, already a tenant in several of Core Scientific’s facilities, proposed the buyout to streamline operations and expand its footprint. Yet, as detailed in coverage from CNBC, the all-stock nature of the transaction ties Core Scientific’s fate to CoreWeave’s volatile stock, which has soared 365% since going public but remains exposed to AI market whims.

Vertical Integration’s Risks and Rewards in the AI Infrastructure Race

The acquisition reflects a wider trend where AI firms are betting big on controlling their supply chains. CoreWeave’s move follows its $6 billion data-center investment in Pennsylvania and a £1.5 billion commitment to UK operations, as noted in reports from Yahoo Finance. By owning power assets, CoreWeave aims to mitigate the skyrocketing costs of energy, which Business Insider has documented as a hidden burden of AI growth, with data centers guzzling electricity and water at unprecedented levels.

However, critics warn of overvaluation risks. Core Scientific’s revenue dipped 44% year-over-year to $78.63 million in Q2, per Insider Monkey, amid crypto volatility, raising questions about its long-term stability. If the deal unravels, it could force a reevaluation of power’s worth in AI, potentially sparking more acquisitions or partnerships.

Investor Sentiment and Market Implications: A Barometer for AI’s Future

Wall Street views this tussle as a litmus test for the AI sector’s sustainability. The New York Times has described data-center capacity as a “barometer for both the health of the tech market and the risk of an A.I. bubble,” with firms like CoreWeave projecting 174% revenue growth in 2025. Deutsche Bank recently added CoreWeave to its top AI buys, citing its infrastructure edge, but the Core Scientific saga introduces uncertainty.

For industry insiders, the outcome could redefine valuation metrics, prioritizing energy security over traditional tech assets. As AI models grow more complex, demanding ever-more compute power, deals like this may become commonplace, but only if they navigate shareholder scrutiny and regulatory hurdles. CoreWeave’s aggressive expansion, including its new venture arm for AI startups as covered by CoinDesk, signals confidence, yet the power play remains a high-stakes gamble in an energy-constrained world.