Nvidia is preparing to raise at least $20 billion in debt, marking its first major bond sale since the start of the AI boom, with the total potentially reaching $25 billion.

The company disclosed the plan in a regulatory filing and said the funds will be used for general corporate purposes, including refinancing existing debt.

The move comes as other major tech firms tied to artificial intelligence, including Alphabet and Amazon, have also turned to debt and equity markets to fund rapid expansion.

Nvidia has benefited heavily from AI demand since the launch of ChatGPT, driving strong revenue growth and a sharp rise in its stock price this year. CNBC has reported.

Despite the new borrowing, the company continues to generate substantial cash flow and has also expanded share buybacks and dividends.