Cohen Circle LLC co-founder Betsy Cohen said special purpose acquisition companies (SPACs) are becoming an increasingly attractive route to the public markets for companies building AI infrastructure, particularly data centers.
Cohen said businesses developing data centers, nuclear power assets, quantum computing technologies and other capital-intensive infrastructure are turning to SPAC mergers instead of traditional IPOs because they require significant and ongoing access to capital, Bloomberg reported.
Companies supporting the rapid expansion of AI infrastructure face substantial funding needs as demand for computing capacity continues to grow. Cohen said this marks a significant evolution for the SPAC market, which originally emerged in the 1990s as a financing vehicle for industries such as steel.