Core Scientific is set to raise $3.3 billion through a high-yield bond sale as part of its strategic shift towards AI-focused data center operations. The surge in demand for AI services has strained data centers, power supply, and advanced chip capabilities, prompting companies to explore riskier debt markets to secure funding for operational development. Having previously sold $175 million in bitcoin, Core Scientific is now building six AI-capable data centers, with a 12-year leasing agreement with CoreWeave that is expected to generate around $10 billion in revenue. This move follows a series of large transactions, including Google-backed data center and CoreWeave offerings, which have collectively raised $6.7 billion.
Core Scientific intends to utilize the bond sale proceeds to repay existing debt, supplement reserves, and support construction projects across multiple states if costs exceed available funds, underscoring the capital-intensive nature of AI infrastructure development.