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0 sats \ 0 replies \ @Bell_curve OP 3h \ parent \ on: CoreWeave to acquire Core Scientific in $9 billion all-stock deal Stacker_Stocks
buy corz warrants, they cost a penny or less
Values CORZ at ~$9bn. CoreWeave keen to mitigate over a decade of costly hosting contracts with CORZ and to achieve this in an all-stock deal is pretty attractive. Only a year ago the offer was $1bn!
2 years ago, Corz filed for chapter 13 reorg.
@freetx do you remember the bubbly boy from Seinfeld?
I consulted copilot...
The short answer is: Rule 11 doesn’t directly apply to AI or AGI, but it does apply to the humans who use them in court filings.
⚖️ Rule 11’s Scope
Rule 11 of the Federal Rules of Civil Procedure governs the conduct of attorneys and unrepresented parties who submit documents to federal courts. It requires that filings:
- Are not for improper purposes (like harassment or delay)
- Are legally and factually grounded
- Are signed by a responsible human
Since AI or AGI systems aren’t legal persons and can’t sign pleadings, they aren’t directly subject to Rule 11. But if a lawyer or party uses AI to draft a filing—say, to generate case law or arguments—they’re still personally responsible for ensuring the content complies with Rule 11.
🤖 AI in the Crosshairs
Recent cases have shown how this plays out:
- In Mata v. Avianca, attorneys used ChatGPT to draft a brief that cited fictitious cases. The court sanctioned them under Rule 11 for failing to verify the content.
- This has led some judges to issue standing orders requiring disclosure of AI use in filings or even banning it outright.
🧠 What About AGI?
If we ever reach a point where AGI can autonomously draft and file court documents, the legal system would need to evolve. For now, humans remain the accountable agents under Rule 11.
If you're thinking about how this intersects with broader legal ethics or policy, I’d be happy to dive deeper. Want to explore how courts are adapting to AI use more broadly?
JUST IN - Trump administration warns that U.S. blackouts could double by 2030 due to increased power demand driven by AI and coal plant closures.
Shareholders of Core Scientific will receive 0.1235 CoreWeave shares for each share they hold. That implies a $20.40 per-share valuation and a 66% premium to Core Scientific's closing stock price before deal talks were reported.
After the deal closes, Core Scientific shareholders will own less than 10% of the combined company.
The two companies could have come together earlier. Last year Core Scientific said it had rejected CoreWeave's unsolicited offer to buy all outstanding shares.
After the deal closes, CoreWeave said it will be able to choose to divest Core Scientific's cryptocurrency mining business, which was responsible for 89% of Core Scientific's first-quarter revenue, or make it ready to handle AI workloads.
"We have gone through the conversion process," Intrator said. CoreWeave is in the middle of an upgrade with Galaxy Digital, he said. The cost associated with converting cryptocurrency sites is less than it is for setting up new AI data centers, Intrator said.
Plus, CoreWeave will be able to pursue investments from infrastructure-oriented vehicles and other sources that could result in a lower cost of capital, Agrawal said on the investor call. As of March 31, CoreWeave's weighted average rate on its short-term debt was 10.1%.
They want free rent by buying corz
edit:
"I think that, like many things that we do, it takes the market some time to internalize the value proposition that we are representing to the market and how it all fits together," CoreWeave CEO Mike Intrator told CNBC in an interview.
In a presentation to investors, CoreWeave said the move will eliminate $10 billion in future lease obligations and significantly enhance operating efficiency.
"We're not paying rent, right, for the next 15 years," Intrator said.
The transaction is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approval.
@siggy47 what do you think of co-pilot analysis of Frankl and the bubble boy?