In its first corporate bond offering in five years, Nvidia plans to raise $20 billion

According to a source who spoke to Reuters on Monday, Nvidia plans to raise $20,000 million through a bond issue in the US. In order to finance the massive capital requirements for the development of next-generation AI chips, the corporation will thus look to the debt market.

The source, who wished to remain anonymous because the idea was still under wraps. Claimed that the industry leader in AI chips had not accessed the investment-grade bond market in five years since raising $5,000 million in June 2021.

According to a term sheet examined by Reuters, the bond issuance is divided into seven tranches with maturities up to 2056. Nvidia intends to use the revenues for normal corporate reasons, such as the repayment and refinancing of outstanding bonds, according to a company representative.

With a combined expenditure expected to surpass $700,000 million this year compared to the roughly $400,000 million anticipated for 2025. Major tech corporations have signaled that spending on AI will not slow down.

Although Nvidia wasn’t constructing massive data centers, businesses looking to train and run increasingly sophisticated models are in high demand for its processors, which are utilized in such servers.

Nvidia has been making significant investments in the creation of the most cutting-edge processors in order to keep up with the quickly developing AI industry. As a result, the company is currently releasing a new line of chips every year, each of which has more sophisticated AI capabilities than the last.

By the end of the April 2026 quarter, the company’s cash and cash equivalents were $13,240 million. At the beginning of trade, Nvidia’s stock increased by 2%.

The offering’s underwriters are Morgan Stanley, J.P. Morgan, and Goldman Sachs.