Nvidia raises $25B in bonds to fund AI expansion

Nvidia announced a senior‑note offering that could raise up to $25 billion, the company's largest bond sale and its first foray into the debt market since 2021. The issuance will be structured in seven tranches with maturities ranging from two to 30 years and interest rates between roughly 4.25% and 5.6%.

Proceeds are slated to refinance existing debt, support general corporate purposes and sustain the massive capital outlays required for Nvidia's artificial‑intelligence infrastructure push. At the time of the sale the firm held about $50 billion in cash, generated $48.6 billion of free cash flow in its most recent quarter and posted record revenue of $81.6 billion, driven largely by data‑center sales. Nvidia also lifted its quarterly dividend and expanded its stock‑buyback program to $80 billion, signalling confidence in continued cash generation.

Market reaction was positive, with Nvidia’s shares rising roughly 3.5% after the announcement. The debt offering underscores the scale of financing needed to maintain Nvidia’s dominant position in the fast‑growing AI‑chip market.