Core Scientific is set to raise $3.3 billion through a high-yield bond sale as part of its strategic shift towards artificial intelligence-driven data center operations. The surge in demand for AI services has led to a significant strain on data centers, power supply, and advanced chip technology, prompting companies to explore riskier debt markets to fund their operational development. Core Scientific, formerly a major bitcoin mining entity, recently sold $175 million worth of bitcoin to further its AI-focused transition.
According to Bloomberg, borrowers associated with AI infrastructure have secured $17.9 billion in high-yield bonds so far this year. Core Scientific is developing 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 collectively raised $6.7 billion. Core Scientific intends to utilize the bond sale proceeds to repay existing debt, fund reserves, and support construction activities across multiple states if costs exceed available funds, highlighting the capital-intensive nature of AI infrastructure development.