Nvidia to raise $20 billion, source says, in first corporate bond sale in five years

June 15 (Reuters) – Nvidia (NVDA.O), opens new tab will raise $20 billion ​through a U.S. bond issuance, a source told Reuters on Monday, ‌tapping the debt market to fund the massive capital requirements to produce cutting-edge AI chips.

Investor demand has hit $85 billion, the source familiar with the matter said, declining to ​be named as the plan was still private. The bond ​consists of seven tranches of notes, maturing as late as 2056, ⁠according to a term sheet seen by Reuters.

The AI chip leader ​has not accessed investment grade bond market in five years, previously raising $5 billion ​in June 2021, the source said.

A company spokesperson said Nvidia aims to use the proceeds for general corporate purposes, including the repayment and refinancing of outstanding notes.

Big Tech ​companies have signaled that spending on AI would not slow down, with ​combined outlays set to surpass $700 billion this year, up from around $400 billion in 2025.

Meta (META.O), opens new tab ‌in ⁠October filed for its largest bond offering of up to $30 billion, while Alphabet (GOOGL.O), opens new tab last month disclosed its plans to sell Japanese yen-denominated bonds for the first time.

While Nvidia has not been building large-scale data centers, its chips, which ​are used in ​those servers, are ⁠seeing red-hot demand from companies looking to train, and run increasingly advanced models.

In order to keep pace with the ​fast-evolving AI sector, Nvidia has been investing heavily in ​building the ⁠most advanced processors, now releasing a new family of chips every year, each with higher AI capabilities than the last.

The company has $13.24 billion in cash ⁠and ​cash equivalents as of quarter ended April 2026. ​Nvidia shares were up 3.5% in afternoon trading.

Goldman Sachs, J.P. Morgan and Morgan Stanley are the ​bookrunners.