Broadcom reportedly seeking up to $100B in debt financing for AI chip deal
Broadcom Inc. is reportedly seeking to borrow up to $100 billion as part of a new artificial intelligence chip financing deal.
Bloomberg today cited sources as saying that the debt is intended to support the growth efforts of Anthropic PBC and unnamed “other companies.” Those companies may include OpenAI Group PBC. Earlier this year, the ChatGPT developer partnered with Broadcom to develop custom processors.
The chipmaker’s debt financing deal could reportedly include between $60 billion and $70 billion worth of senior notes. Those are loans that the borrower must pay back before its other obligations in the event of a bankruptcy. It’s believed that Broadcom may guarantee a portion of the debt. Additionally, the company could reportedly add about $30 billion worth of junior notes, debt instruments that are only repaid after the borrower offloads all its senior debt.
It’s unclear what AI initiatives Broadcom plans to support with its chip financing deal. However, today’s report did specify that Blackstone and Apollo Global Management are among the investors from which the chipmaker hopes to raise the funds.
