By Saeed Azhar and Zaheer Kachwala
June 15 (Reuters) - Nvidia 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.
The AI chip leader has not accessed investment grade bond market in five years, previously raising $5 billion in June 2021, 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. Nvidia did not immediately respond to a request for comment.
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 in October filed for its largest bond offering of up to $30 billion, while Alphabet 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. It intends to use the proceeds for general corporate purposes, including the repayment and refinancing of outstanding notes, the term sheet said.
Goldman Sachs, J.P. Morgan and Morgan Stanley are the bookrunners. Nvidia shares were up 2.5% in early trading.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur)
