Core Scientific and SoftBank raise over $50B in debt to fund AI infrastructure and investments

Core Scientific Inc. has raised $3.3 billion through a high-yield note sale, representing one of the largest risky borrowings tied directly to the booming demand for AI infrastructure. According to Bloomberg, this junk-bond offering underscores the aggressive financing strategies companies are employing to build data centers and computing power essential for artificial intelligence applications.

The deal highlights a broader trend in the AI sector, where firms are tapping into high-risk debt markets to fuel rapid expansion amid intense competition. Core Scientific, a key player in high-performance computing and bitcoin mining that's pivoting heavily toward AI, is using the funds to construct facilities that support the massive computational needs of AI models. This move comes as tech giants race to secure capacity for training and deploying ever-larger AI systems, affecting investors, infrastructure providers, and the broader energy grid strained by power-hungry data centers.

In a parallel development, SoftBank Group Corp. is aggressively leveraging debt to deepen its AI investments, seeking massive loans backed by or earmarked for its stakes in leading AI firms. Bloomberg reports that SoftBank is pursuing a $10 billion loan secured by its shares in OpenAI, the U.S. artificial intelligence powerhouse behind ChatGPT. This follows even larger borrowings, including a record $40 billion bridge loan announced earlier, as detailed by The Japan Times and CNBC, to finance a $30 billion follow-on investment in OpenAI on top of more than $30 billion already committed.

SoftBank's financing spree, underwritten by major banks like JPMorgan Chase, Goldman Sachs, Mizuho, Sumitomo Mitsui, and MUFG, adds to its substantial debt load but positions it at the forefront of the global AI race. The unsecured loans, some maturing in just 12 months, signal confidence in OpenAI's growth potential and speculation around a possible IPO, with total SoftBank exposure now exceeding $60 billion. Investors and analysts are watching closely, as repayment could involve asset sales, impacting SoftBank's balance sheet and holdings like its 90% stake in chip designer Arm Holdings.

Meanwhile, storage and data management company VAST Data has secured $1 billion in Series F funding at a whopping $30 billion valuation, more than tripling from its previous $9.1 billion mark, as reported by The Next Web. Co-led by Drive Capital and Access Industries, with participation from Nvidia, Fidelity, and NEA, the round includes over $500 million in secondary capital. VAST attributes its surge to $4 billion in cumulative bookings and $500 million in recent pipeline, betting that data storage bottlenecks will prove the critical hurdle in scaling AI systems.

These financings—spanning junk bonds, venture rounds, and leveraged loans—illustrate the high-stakes financial engineering powering AI's infrastructure buildout. Companies like Core Scientific and VAST are directly addressing compute and storage needs, while SoftBank's moves amplify bets on foundational AI developers like OpenAI. Stakeholders, from venture capitalists to bondholders, face elevated risks due to the speculative nature of these deals, with next steps including facility constructions, potential IPOs, and debt refinancings that could reshape market dynamics.

The influx of capital matters profoundly for the AI ecosystem, enabling breakthroughs but raising concerns over sustainability amid volatile interest rates and energy demands. Data center operators and AI firms stand to benefit most, though broader effects ripple to utilities, regulators, and global investors betting on the technology's long-term dominance. As these projects unfold, scrutiny will intensify on whether the infrastructure can deliver returns justifying the multibillion-dollar gambles.