CoreWeave (CRWV) shares closed in the red on Monday after the AI cloud-computing startup confirmed plans of buying Core Scientific (CORZ) for about $9 billion. The CORZ acquisition is expected to close in the final quarter of 2025 – provided it secures the required regulatory and shareholder approvals over the next few months.

The $9 billion deal is a play on AI power needs, but one analyst thinks the purchase price undervalues Core Scientific’s business and potential.