Core Scientific Seeks Billions for AI-Focused Data Center Expansion

Core Scientific, a company previously involved in bitcoin mining, is shifting its focus towards artificial intelligence (AI) infrastructure. In a bid to secure funding for this pivot, the company has announced plans to issue $3.3 billion in junk bonds.

The move reflects growing demand for AI services, which has put pressure on data centers and power supply chains. To keep up with this demand, companies are turning to riskier debt markets to raise funds for developing their operations.

Core Scientific's decision follows a string of large deals in the AI infrastructure sector, including offerings tied to Google-backed data centers and CoreWeave, which raised $6.7 billion combined. Another firm, Edged Compute, is also marketing $1.3 billion in bonds to fund facilities leased to CoreWeave and an Alibaba unit.