In a bid to further its transition into AI-driven data center operations, Core Scientific is set to raise $3.3 billion through a high-yield bond sale. The demand for AI services has resulted in data centers, power supply, and advanced chips being pushed to their limits, prompting companies to explore riskier debt market segments for funding.
Core Scientific, formerly a bitcoin mining entity, sold $175 million worth of bitcoin last month to accelerate its AI pivot. The company is constructing six data centers designed to support AI workloads, with a 12-year lease agreement with CoreWeave that could generate around $10 billion in revenue.
This move follows a series of large-scale deals, including recent offerings tied to Google-backed data centers and CoreWeave, which raised a combined $6.7 billion. Core Scientific plans to utilize the proceeds to repay existing debt, fund reserves, and support construction across multiple states if costs exceed available funds, highlighting the capital-intensive nature of AI infrastructure development.