Artificial intelligence hyperscaler CoreWeave said Monday it will acquire Core Scientific, a leading data center infrastructure provider. It is an all-stock deal valued at approximately $9 billion. The deal strengthens CoreWeave's position in the AI arms race by bringing critical infrastructure in-house.

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.

Tie-up brings together former bitcoin miners that have pivoted to satisfying demand for high-performance computing