Broadcom reportedly seeking up to $100B in debt financing for AI chip deal

Broadcom Inc. is reportedly seeking up to $100 billion in debt financing as part of a new artificial intelligence chip financing deal. The funds are intended to support the growth of Anthropic PBC and unnamed "other companies," which may include OpenAI Group PBC. The debt financing deal could include between $60 billion and $70 billion worth of senior notes, which must be paid back before other obligations in the event of bankruptcy.

Broadcom may also guarantee a portion of the debt and add about $30 billion worth of junior notes, which are repaid after the borrower offloads all senior debt. The chipmaker's debt financing deal could support various AI initiatives, although specific details were not disclosed. Blackstone and Apollo Global Management are among the investors expected to provide funds.

The AI XPV Platform, launched in June alongside Blackstone, Apollo Global Management, and other investors, has already provided Anthropic with $35 billion in financing for data center construction initiatives. The platform aims to facilitate over 20 gigawatts of data projects through 2028, all using Broadcom silicon. Broadcom is a leading supplier of chips for data center switches and the world's top maker of host bus adapters, which connect servers with storage equipment.

AI accelerators have become a significant revenue source for Broadcom, including the TPU line of machine learning processors developed with Google LLC.