AI mania tanks CoreWeave’s Core Scientific acquisition; it buys Python notebook Marimo

In a significant turn of events, shareholders of Core Scientific have voted against a $9 billion all-stock acquisition proposal from rival CoreWeave. This decision follows a recommendation from their largest shareholder, Sina Toussi of Two Seas Capital, which focuses on companies post-bankruptcy. Having emerged from bankruptcy proceedings in January 2024, Core Scientific, originally a cryptocurrency mining operation, shares its roots with CoreWeave, which has shifted its focus to AI data center services. With backing from Nvidia, CoreWeave's stock has skyrocketed from a market cap of $14 billion to approximately $66 billion, reflecting the growing investor enthusiasm for AI-related opportunities. Prior to the acquisition vote, CoreWeave had established a substantial $10 billion, 12-year agreement with Core Scientific to utilize its facilities for AI services. However, despite the acquisition offer being positioned as a premium to Core Scientific’s share price, Toussi argued that the company could evolve independently into a competitor akin to CoreWeave. In his letter opposing the acquisition, Toussi noted the escalating investments in AI infrastructure, which have significantly boosted the valuations of Core Scientific's competitors. He questioned the rationale behind accepting an offer valued at merely $16.40 per share. Following the rejection of the acquisition, Core Scientific's stock experienced a rise, pushing its market cap to $6.6 billion. This trend of investors declining acquisition offers in hopes of more lucrative deals hints at the burgeoning AI bubble. Meanwhile, CoreWeave has not slowed down its expansion efforts; it recently acquired Marimo, an open-source alternative to Jupyter Notebook, for an undisclosed amount. Marimo, which has reportedly raised around $5 million, develops tools that integrate code, media, and text, making it valuable for interactive data analysis and AI application development, thereby aiding CoreWeave in its transition from hosting to AI application development.