CoreWeave (NASDAQ:CRWV) will not increase its $9B offer for Core Scientific (NASDAQ:CORZ) despite opposition to the proposed acquisition from some major shareholders, Bloomberg News reported.
“We’re very comfortable that the way that we have priced it is appropriate for us,” said CEO Michael Intrator at Bloomberg Technology in London, the report added. “If there’s someone else that would like to step in, they can step in.”
CoreWeave did not immediately respond to a request for comment from Seeking Alpha.
On Monday, proxy firm ISS recommended that Core Scientific shareholders reject CoreWeave’s planned acquisition. Core Scientific holders are expected to reject the CoreWeave deal at a shareholder vote on Oct. 30, CNBC’s David Faber reported earlier this month, citing activist investors and large holders.
“We continue to think it makes sense. It will go to a vote, but you won’t see us bump our price or increase our price,” Intrator noted, according to the report.
CoreWeave supplies AI computing power to companies like OpenAI and Microsoft (MSFT) and has been working to diversify its customer base, adding a deal with Meta Platforms (META) worth about $14.2B last month. The company Microsoft accounted for over 70% of its sales in the June quarter.
Intrator said he anticipates new customers to come into the market so the company can diversify. “But it’s not going to be 20,000 customers building foundation models,” said Intrator. “That’s just not how this works.”