• Early signals: AI’s capital hunger
• Nvidia lines up its biggest bond deal
• Why borrow if you’re flush with cash?
• Investors and rivals face the wider AI debt wave

Nvidia Plans Over $25 Billion Bond Sale Nvidia is turning to the bond market for more than $25 billion in fresh cash, underscoring how even the richest winners of the AI boom now feel compelled to borrow heavily to keep up with soaring infrastructure costs.

§Early signals: AI’s capital hunger

In the run-up to Nvidia’s sale, Wall Street analysts were already warning that the AI buildout would consume unprecedented amounts of capital. Goldman Sachs estimated that major “hyperscalers” would spend about $770 billion on capital expenditures in 2026, roughly equal to their entire operating cash flow, forcing them to “increasingly [turn] to debt and equity issuance and [pull] back on buybacks.”

§Nvidia lines up its biggest bond deal

On Monday, Nvidia launched what Axios called an “AI debt boom” moment, initially setting out to sell about $20 billion in corporate bonds, its first debt sale since 2021 and four times the size of its last two offerings. The deal quickly grew. By early afternoon in New York, investor orders topped $85 billion, allowing the company to upsize the transaction to roughly $25 billion and tighten pricing, with the 10‑year tranche expected to yield just 0.5 percentage points over US Treasuries, down from 0.75 points at the outset.

Ars Technica described the seven-part, investment‑grade deal—spanning maturities from two to 30 years—as Nvidia’s “first bond deal in five years,” designed to “test investor appetite for further exposure to the AI sector.”

§Why borrow if you’re flush with cash?

Despite holding about $62.6 billion in cash and equivalents—“more than Apple’s cash pile” according to Axios—Nvidia is still choosing to borrow, in part because its capital spending is projected to be 150% higher than two years ago. The company says it will use proceeds for “general corporate purposes, including repayment and refinancing of outstanding notes,” a move that will more than triple its total debt to around $30 billion.

Portfolio manager Lauren Wagandt called Nvidia “a very high-quality company” that doesn’t tap bond markets as frequently as other tech giants, helping explain the strong demand.

§Investors and rivals face the wider AI debt wave

For investors, Nvidia’s sale is a bellwether in a market already absorbing a “torrent” of tech financing—from SpaceX’s record IPO to Alphabet’s rare equity issuance and Anthropic’s turn to private credit. Nvidia, as “the biggest beneficiary of Big Tech’s trillion-dollar spending spree on AI infrastructure,” is effectively locking in cheap money now as the industry races to fund the next phase of AI growth.

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