Core Scientific is poised to raise $3.3 billion via a high-yield bond sale as it accelerates its shift towards AI-focused data center operations. The surge in demand for AI services has led to increased pressure on data centers, power supply, and advanced chip capabilities, prompting companies to explore riskier debt market segments for funding. Having recently sold $175 million in bitcoin, Core Scientific, formerly a prominent bitcoin miner, is now building six data centers designed to support AI workloads, with CoreWeave securing a 12-year lease that could generate around $10 billion in revenue. This move follows a series of large-scale deals, including Google-backed data center and CoreWeave offerings that collectively raised $6.7 billion.
Core Scientific intends to utilize the bond sale proceeds to repay existing debt, replenish funds, and support construction projects across multiple states if costs exceed available resources, underscoring the capital-intensive nature of AI infrastructure development. With its AI pivot, the company seeks to leverage its existing assets, including data centers and power contracts, to capitalize on the growing demand for AI hosting services.