In spite of the fact that He is the Creator of all that is, it is all as nothing to God, reduced as it is to insignificance by His infinity.
In other words, the truth of the matter is that the Divine did not create something out of nothing.
He created "nothing" out of something that is Himself.
–Rabbi Adin Steinsaltz
From The Sustaining Utterance, p. 34, by Rabbi Adin Steinsaltz