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By James Van Straten, CoinDesk Bot|Edited by Parikshit Mishra
Mar 6, 2025, 2:18 p.m. UTC
What to know:
- Microsoft has withdrawn from some CoreWeave agreements due to delivery issues, though it remains a key partner.
- CoreWeave, heavily reliant on Microsoft (62% of revenue), faces risks ahead of its IPO amid shifting AI infrastructure strategies.
- Core Scientific share price is down 15% pre-market.
Shares of bitcoin (BTC) miner Core Scientific (CORZ) were down 15% in pre-market on Thursday after reports that Microsoft (MSFT) has pulled back from some agreements with soon to listed cloud computing firm CoreWeave.
Last month, Core Scientific said it was planning a $1.2 billion data center expansion with CoreWeave. This week, CoreWeave filed for an intital public offering, hoping to raise $4 billion at a $35 billion valuation.
STORY CONTINUES BELOW
According to an FT article, CoreWeave, which supplies artificial intelligence (AI) computing power to Microsoft, was facing delivery issues and missed deadlines, causing the tech giant to reduce its commitments, though it remains a major partner.
Microsoft represents 62% of CoreWeave’s revenue and has pledged over $10 billion in spending on its services by 2030. CoreWeave has rapidly grown, generating $1.9 billion in revenue in 2024 but posting significant losses.
It relies heavily on Nvidia’s (NVDA) AI chips and has raised $14.5 billion in debt and equity. Microsoft’s decision aligns with its shifting AI infrastructure strategy, though it remains committed to major investments in the sector.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin’s role within the broader financial system.
In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin, MicroStrategy (MSTR), and Semler Scientific (SMLR).
“CoinDesk Bot” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy here.
