Nvidia joins AI debt rush with $25 billion bond sale

Nvidia has become the latest technology giant to tap debt markets as the cost of building artificial intelligence infrastructure continues to surge. The chipmaker would raise $25 billion, its first corporate debt sale since 2021. According to reports, the deal was initially expected to raise about $20 billion, but investor demand reached roughly $85 billion, allowing Nvidia to increase the size of the offering.

“We intend to use the net proceeds from this offering for general corporate purposes, including the repayment and refinancing of outstanding notes,” the company said in the filing.

According to the company's filing, the bonds were issued across seven tranches with maturities extending to 2056. Goldman Sachs, JPMorgan Chase and Morgan Stanley led the sale.

Amazon turns to debt as AI spending accelerates

Amazon disclosed on June 10 that it had entered into a $17.5 billion senior unsecured delayed-draw term loan agreement with Citibank and a syndicate of lenders that includes JPMorgan Chase, Bank of America, HSBC and Wells Fargo. Any amounts borrowed would mature three years after they are drawn.

The financing comes as Amazon sharply increases spending on artificial intelligence infrastructure. Trailing 12-month free cash flow fell to $1.2 billion from $25.9 billion a year earlier as property and equipment purchases surged. The company has been investing heavily in Amazon Web Services, custom AI chips, servers and data-centre capacity needed to support generative AI applications.

Alphabet uses both debt and equity to fund AI expansion

Earlier in June, Alphabet announced plans to raise $80 billion in fresh equity capital. The package includes a $30 billion public offering, a $40 billion at-the-market programme and a $10 billion private placement with Berkshire Hathaway. The company said the proceeds would be used to expand AI infrastructure and computing capacity.

In February, the Google parent completed a major bond issuance that attracted more than $100 billion of investor demand. It later raised nearly $17 billion through euro- and Canadian-dollar debt offerings, setting records in several international debt markets. During its latest quarter earnings update, the company increased its 2026 capital expenditure forecast to between $180 billion and $190 billion. Management said demand for AI products and cloud-computing services is exceeding available supply, requiring a significant expansion of infrastructure.

Meta raises $25 billion

Meta took to bond markets in April with a $25 billion investment-grade offering split across six tranches. The management in an earnings call said the additional spending would support AI infrastructure, including data centres, servers and computing capacity required for its growing portfolio of AI products.

The bond sale came less than a year after Meta completed a $30 billion debt offering, signalling a significant change in how the company finances expansion. For years, Meta relied primarily on cash generated by its advertising business. Today, it is increasingly supplementing that cash flow with long-term borrowing.

Oracle, too, raised $25 billion through a bond offering that reportedly attracted approximately $129 billion in investor orders, one of the strongest responses seen in the investment-grade market this year. Oracle has been expanding its cloud infrastructure at an aggressive pace as demand for AI computing continues to grow. The company has highlighted rising demand from customers building and deploying AI models, while also increasing capacity to support large-scale AI workloads.