According to sources, Broadcom (AVGO) is in active negotiations to secure between $70 billion and $80 billion in debt financing for a chip-focused funding initiative. This substantial capital injection is intended to back several artificial intelligence enterprises, including Anthropic.
This move underscores a broader trend of technology firms aggressively tapping into the bond market, raising record-breaking sums to fuel the expansion of AI infrastructure. The news, confirmed by David Faber on Thursday morning, indicates that the financing structure would allocate roughly $45 billion to a senior tranche and approximately $35 billion to a junior tranche, though these figures remain subject to change.
Bloomberg first reported the potential deal on Thursday, suggesting the total package could ultimately reach as high as $100 billion. Major investment firms, including Blackstone (BX) and Apollo Global Management (APO), are reportedly in talks to participate in the financing.
Chip manufacturers are now mobilizing unprecedented levels of capital to meet the explosive demand for new models and computing tasks driven by the AI boom. In June, Broadcom unveiled a new AI platform designed to deliver 20 gigawatts of computing power for clients like Anthropic and OpenAI. Blackstone and Apollo successfully completed the initial $35 billion financing round for this platform.
In a related development, according to a securities filing, AI chip leader Nvidia announced this week that it would provide up to $105 billion in financing for OpenAI's data center project in Ohio. Just a week prior, Nvidia revealed plans to launch a $500 billion funding initiative in collaboration with six major asset management firms, aiming to establish computing infrastructure as a brand-new asset class.
Shares of Broadcom saw a modest increase of over 1% on Friday following the news.
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