Even Nvidia is joining the AI borrowing spree, with a historic $20 billion bond deal

By Christine Ji

Nvidia is launching a seven-tranche debt offering to refinance its existing debt, as investor appetite for AI credit surges

Nvidia's reported $20 billion bond offering marks its first return to the corporate debt market since June 2021, when the company raised $5 billion.

The arms dealer of the artificial-intelligence race is looking to raise new debt even as it continues to print money.

According to a preliminary filing with the Securities and Exchange Commission on Monday, Nvidia (NVDA) plans to raise debt across seven tranches, with maturities between 2028 and 2056. Reuters reported that the chip maker is looking to issue $20 billion worth of bonds. It's Nvidia's first corporate bond sale since 2021, when the company raised $5 billion.

An Nvidia spokesperson told MarketWatch that the proceeds will be used for general corporate purposes, including the repayment and refinancing of outstanding notes.

Shares of Nvidia rose 3.5% on Monday.

Read: Amazon lines up another $17.5 billion for AI as its debt pile grows further

Big Tech companies have been swept up in a flurry of debt and equity issuances to secure capital for their AI ambitions - often to buy Nvidia chips to outfit their data centers. Last week, Amazon.com (AMZN) announced a $17.5 billion delay-draw term loan, and earlier this month Alphabet (GOOGL) (GOOG) announced an $85 billion equity offering. The hyperscalers plan to put upwards of $700 billion this year toward capital expenditures, a boon for Nvidia and other hardware companies.

Nvidia is now joining in on the fundraising as the AI buildout continues to ramp. Demand for Big Tech debt is high among investors, with jumbo bond offerings from Amazon, Alphabet and Meta Platforms (META) all becoming heavily oversubscribed. It's providing Nvidia an opportune window to jump on the bandwagon and issue cheap debt.

Additionally, Nvidia's own capital expenditures are expected to reach $7.9 billion this year, according to FactSet, up from $6 billion last year and $3.2 billion the year before. On the most recent earnings call, Nvidia said that it's allocating its capital across research and development, ecosystem investments and share repurchases.

The company is developing a new consumer chip optimized for agentic-AI workloads called RTX Spark. But in addition to designing new hardware, Nvidia has become a major strategic investor in various parts of the AI-hardware supply chain, striking deals for large purchase commitments. Nvidia has investments in Anthropic, OpenAI and xAI, which was acquired by SpaceX (SPCX). The company also has a longstanding relationship with neocloud company CoreWeave (CRWV).

See more: Nvidia poured $18.6 billion into venture-capital investments in just three months. Where does the cash trail lead?

-Christine Ji

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06-15-26 1644ET