Questions About CoreWeave’s Shopping Spree

In just three months, CoreWeave has gone from an iffy IPO candidate to a financial monster gobbling up rivals. That’s what a 300% stock rally can do.

CoreWeave’s $9 billion bid, announced Monday, for its rival in the artificial data center business, Core Scientific, has far more significance than just a flashy deal. It also shows the dominance of artificial intelligence in all parts of tech and the crazy valuations that are making investors nervous. And it demonstrates how AI’s astounding demand for cash is leading to financial strategies that are unusual in tech.