A data center developer backed by Blue Owl Capital raised $1.1 billion through a junk-bond offering at a 9.25% yield to finance AI infrastructure expansion.
The offering priced at 98.5 cents on the dollar, giving investors a yield 2.7 percentage points above similarly rated debt. The higher-than-typical spread reflects investor caution around the financing terms.
CoreWeave, a major player in AI-focused data center capacity, has rapidly scaled its infrastructure to meet demand from generative AI companies. The company secured $200 million in Series B funding last year and has since become a critical supplier of GPU capacity.
The bond sale signals continued investor appetite for AI infrastructure financing, though the elevated yield demonstrates market concerns about debt servicing in the sector. Junk bonds typically carry higher yields to compensate investors for greater default risk.
Data center operators have become central to the AI buildout, with firms competing aggressively to expand capacity. Rising power costs and construction expenses have driven companies to tap debt markets for funding.
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