Core Scientific is set to raise $3.3 billion through a high-yield bond sale, marking a significant step in its strategic shift towards AI-driven data center operations. The surge in demand for AI services has pushed data centers and related infrastructure to their limits, prompting companies to explore alternative funding sources. Following the sale of $175 million in bitcoin last month, Core Scientific is now building six data centers designed to support AI workloads, with a 12-year lease agreement with CoreWeave expected to generate around $10 billion in revenue. This move is part of a larger trend, with AI infrastructure-related borrowers raising $17.9 billion in junk bonds so far this year.
Core Scientific's pivot from bitcoin mining to AI hosting is driven by the pursuit of higher margins, as the company seeks to capitalize on its existing assets, including data centers and power contracts, to support the growing demand for AI computing power.