In a bid to accelerate its transition into artificial intelligence-focused data center operations, Core Scientific is set to raise $3.3 billion through a high-yield bond sale. The surge in demand for AI services has pushed data centers, power supply, and advanced chip technology to their limits, prompting companies to explore riskier debt markets to secure necessary funds. Following its sale of $175 million in bitcoin last month, Core Scientific, formerly a major bitcoin miner, is now building six data centers designed to support AI workloads, with the capacity leased to CoreWeave under a 12-year agreement valued at around $10 billion. This move is part of a larger trend, with borrowers linked to AI infrastructure raising $17.9 billion in junk bonds so far this year.
Core Scientific's plans include repaying existing debt, funding reserves, and supporting construction across several states if costs exceed available funds, underscoring the capital-intensive nature of AI development. With its pivot from bitcoin mining to AI hosting, the company is seeking to capitalize on more lucrative margins, having emerged from reorganization in January 2024 and relisted on Nasdaq under the ticker CORZ.