Broadcom is in advanced discussions to raise between $70 billion and $80 billion in debt to finance chip development for artificial intelligence companies, including Anthropic, according to sources cited by CNBC's David Faber [1]. The financing structure is expected to include a senior tranche of approximately $45 billion and a junior tranche of about $35 billion, though these figures remain subject to change [1]. Bloomberg previously reported that the total deal could reach $100 billion, with Blackstone and Apollo Global Management among the potential participants [1].
This move comes as chipmakers seek unprecedented levels of capital to support the rapid expansion of AI infrastructure and meet surging demand for advanced models and workloads [1]. In June, Broadcom announced a new AI platform designed to enable 20 gigawatts of compute for Anthropic and OpenAI, with Blackstone and Apollo leading the initial $35 billion financing round [1].
In related developments, Nvidia disclosed this week that it will provide up to $105 billion to finance a new data center for OpenAI in Ohio, according to a securities filing [1]. Additionally, Nvidia recently announced partnerships with six major asset managers on a $500 billion financing initiative aimed at positioning compute infrastructure as a new asset class [1].
Following news of the debt deal, Broadcom shares rose by a little more than 1% on Friday, indicating a positive market reaction to the company's aggressive push into AI chip financing [1].
CONCLUSION
Broadcom's pursuit of a massive debt deal underscores the escalating capital requirements in the AI chip sector. The positive share price movement reflects investor confidence in Broadcom's strategy to capitalize on AI-driven demand. The involvement of major financial players and parallel initiatives by Nvidia highlight the high-stakes competition and transformative potential in AI infrastructure financing.