BREAKING: Nvidia (NVDA) to raise $20 billion through a U.S. bond issuance for the first time since 2021, a source told Reuters on Monday, tapping the debt market to fund the massive capital requirements to produce cutting-edge AI chips.
The AI chip leader has not accessed investment grade bond market in five years, previously raising $5 billion in June 2021.
The bond consists of seven tranches of notes, maturing as late as 2056, according to a term sheet seen by Reuters.
The company has $13.24 billion in cash and cash equivalents as of quarter ended April 2026.
A company spokesperson said Nvidia aims to use the proceeds for general corporate purposes, including the repayment and refinancing of outstanding notes.
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.
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