Nvidia launched a $25 billion bond sale on June 15, 2026, and received over $85 billion in orders—more than 3.4x oversubscribed—making it one of the strongest debt offerings of the year. This marked Nvidia's first corporate bond issuance since 2021, when the chipmaker had annual revenue of ~$27 billion. In fiscal 2026, Nvidia generated $216 billion in revenue. The offering underscores that even hyperscalers generating massive top-line growth are burning cash faster than they can raise it through operating income.
Nvidia is not deploying this capital for its own capex (the company has historically been cash-generative). Instead, the bond proceeds fund strategic investments in AI startups and infrastructure: Nvidia has committed over $40 billion in equity investments in the first half of 2026 alone, including a flagship $30 billion investment in OpenAI and billions in backing CoreWeave, Anthropic, xAI, and photonics companies like Lumentum and Coherent. In May, Nvidia also authorized an $80 billion share buyback and raised its dividend, signaling capital confidence despite the credit market tap.
For practitioners, the massive 3.4x oversubscription on Nvidia debt reflects investor confidence in the company's secular moat, not skepticism. But the data point matters in aggregate: Alphabet ($85B equity raise), Meta, Amazon, and Microsoft are all fundraising at record scale for AI buildout. Combined hyperscaler capex is now projected at $600+ billion annually. The bond market is pricing in that this capex wave will eventually drive returns—but it also signals that the AI infrastructure boom is being financed, in part, through debt leverage that didn't exist in 2024.