AI Daily: CoreWeave to acquire Core Scientific in all-stock deal

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

CORE SCIENTIFIC DEAL: CoreWeave (CRWV) and Core Scientific (CORZ) announced that they have signed a definitive agreement under which CoreWeave will acquire Core Scientific in an all-stock transaction. Under the terms of the merger agreement, Core Scientific stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock based on a fixed exchange ratio. Through this acquisition, CoreWeave will own approximately 1.3 GW of gross power across Core Scientific’s national data center footprint with an incremental 1 GW+ of potential gross power available for expansion. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approval and approval by Core Scientific stockholders.

Upon closing and under the terms of the agreement, which has been approved by the board of directors of each company, Core Scientific stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock held. As of July 3, the agreed-upon exchange ratio implies a total equity value of approximately $9B. This is calculated on a fully diluted basis and based on CoreWeave’s 5-day VWAP. This represents a $20.40 per share value based on the closing price of CoreWeave Class A common stock as of July 3, 2025, and a premium of approximately 66% to the unaffected Core Scientific closing share price of $12.30 on June 25. The final value will be determined at the time of transaction close.

Upon close, CoreWeave expects Core Scientific’s stockholders’ ownership of the combined company will be less than 10%. The financial impact of the transaction includes: immediate elimination of over $10B of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years; leverage neutral impact to CoreWeave while opening access to diverse financing sources at a more attractive cost of capital; including the elimination of the lease overhead, this deal adds $500M of estimated fully ramped, annual run rate cost savings by the end of 2027 through streamlined operational focus and potential to repurpose toward HPC usage or divest crypto mining business over the medium-term horizon.

HUMAN TRIALS: Alphabet’s (GOOGL) secretive drug discovery arm, Isomorphic Labs, is getting ready to start testing its AI-designed drugs in humans, Colin Murdoch, the company’s president and Google DeepMind’s chief business officer, told Fortune. Born from DeepMind’s AlphaFold breakthrough, Isomorphic Labs is pairing cutting-edge AI with pharma veterans to design medicines faster, cheaper, and more accurately, Fortune’s Beatrice Nolan writes.

AI SEARCH: Google told publishers it is hiring new staff to market its ad tech to big advertisers and ad agencies, signaling a renewed focus on publisher ad tech, The Information’s Catherine Perloff reports.

EU ANTITRUST COMPLAINT: Google is facing an EU antitrust complaint over its AI Overviews from a group of independent publishers, Foo Yun Chee of Reuters reports, citing documents seen by the journal.