Nvidia Plans Massive Debt Offering as AI Demand Continues to Surge

Nvidia is preparing a debt offering that could raise at least $20 billion, marking the chipmaker’s first bond sale since demand for artificial intelligence infrastructure transformed its business, according to people familiar with the matter.

The company disclosed plans for a capital raise in a filing with the U.S. Securities and Exchange Commission on Monday but did not specify the size of the offering. Sources familiar with the transaction said the debt sale is expected to raise at least $20 billion and could ultimately approach $25 billion.

Earlier this year, Nvidia said it had the ability to raise up to $25 billion through unsecured commercial paper notes. The latest financing effort would significantly exceed the company’s previous debt raise in 2021, when it issued $5 billion in notes with maturities extending to 2031.

The planned offering comes as several companies linked to the artificial intelligence sector turn to capital markets to fund expansion and investment. Alphabet recently outlined plans for $85 billion in equity-related offerings after raising more than $55 billion in debt since November. Super Micro also announced $7 billion in equity-related financing transactions last week, while Amazon has completed roughly $54 billion in debt sales this year and recently unveiled plans for an additional Canadian debt offering worth about $10 billion.

Nvidia enters the debt raise with approximately $7.5 billion in long-term debt and about $1 billion in short-term debt. The company’s financial profile has changed substantially since its last bond offering. Revenue totaled roughly $27 billion in fiscal 2022, compared with $216 billion in fiscal 2026.

The company’s rapid growth accelerated following the release of OpenAI’s ChatGPT in late 2022, which fueled demand for Nvidia’s graphics processing units among AI developers and large cloud computing providers.

An Nvidia spokesperson said proceeds from the offering will be used for general corporate purposes, including repaying and refinancing existing debt.

The planned debt sale follows Nvidia’s announcement in May of an expanded capital return strategy. At the time, the company increased its dividend from one cent per share to 25 cents and authorized $80 billion in share repurchases. Nvidia also generated $49 billion in free cash flow during its most recent quarter, up from $35 billion a year earlier, and reiterated on its latest earnings call that it plans to “return roughly 50% of free cash flow to shareholders this year.”

This analysis is based on reporting from CNBC.

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