Nvidia to raise $20 billion in first bond sale in five years to fuel AI chip expansion

Nvidia already has more than $13 billion in cash. Now, the company is preparing to raise another $20 billion.

The AI chip giant is returning to the corporate bond market for the first time in five years, according to a source familiar with the matter. The planned debt offering highlights the staggering amount of capital flowing into artificial intelligence as tech companies race to build the infrastructure needed to train and run increasingly powerful AI models.

“Nvidia will raise $20 billion through a ​U.S. bond issuance, Reuters reported, citing a source familiar with the matter.

The bond sale would rank among the largest corporate debt offerings of the year. According to a term sheet reviewed by Reuters, Nvidia’s offering includes seven tranches of notes with maturities stretching as far as 2056. The source requested anonymity since the plans have not been publicly announced.

Nvidia last tapped the investment-grade bond market in June 2021, raising $5 billion. This time, the company is seeking four times that amount.

A company spokesperson said the proceeds will be used for general corporate purposes, including repaying and refinancing existing debt.

Why Nvidia is borrowing despite holding $13 billion in cash

The move comes as spending on AI infrastructure continues to climb across the technology industry. Major tech companies have made clear that AI remains their top investment priority, with combined spending expected to exceed $700 billion this year, up from roughly $400 billion in 2025.

Nvidia sits at the center of that spending wave.

The company does not operate massive cloud data center networks itself. Its business depends on supplying the chips that power them. Demand for Nvidia’s processors has remained strong as cloud providers, startups, governments, and enterprises compete to secure computing capacity for AI workloads.

Keeping that lead is expensive.

Nvidia has accelerated its product release cycle and now introduces a new generation of AI processors every year. Each new platform delivers greater performance and larger computing capabilities, pushing the company to invest heavily in research, development, manufacturing partnerships, and supply chain capacity.

The debt raise suggests Nvidia is positioning itself for the next phase of AI growth rather than slowing down after years of explosive expansion.

The company’s financial position remains strong. Nvidia reported $13.24 billion in cash and cash equivalents at the end of April 2026. Shares rose about 2% in early trading Monday following reports of the planned bond offering.

Goldman Sachs, J.P. Morgan, and Morgan Stanley are serving as bookrunners on the transaction.

The offering arrives as large technology companies increasingly turn to debt markets to finance AI-related investments. Meta filed in October for a bond offering of up to $30 billion, its largest ever. Alphabet disclosed plans last month to issue Japanese yen-denominated bonds for the first time.

Nvidia’s planned debt sale is the latest sign that the AI infrastructure race is becoming one of the most expensive technology buildouts in history. The news comes days after Alphabet unveiled plans to raise $80 billion for AI expansion, including a reported $10 billion investment from Berkshire Hathaway. Across Silicon Valley, companies are committing tens of billions of dollars to secure the chips, data centers, and computing power needed to stay competitive in AI.

For Nvidia, the message is clear: the AI spending boom is still gaining momentum, and the company intends to remain at its center.