Broadcom in talks to raise up to $80 billion for AI chip financing

Broadcom is in talks to raise upwards of $70 billion to $80 billion in debt for a chip financing deal aimed at supporting artificial intelligence companies including Anthropic, CNBC's David Faber confirmed Thursday morning.

The senior tranche of financing, which would get paid back first, is expected to be around $45 billion, and the junior tranche will be about $35 billion, though the numbers are fluid sources said. Bloomberg first covered the deal on Thursday, reporting that it could reach $100 billion in total and that Blackstone and Apollo Global Management are among the firms in talks to participate.

Chipmakers are seeking historic levels of capital to help finance the AI buildout and meet increased demand for new models and workloads. In June, Broadcom announced a new AI platform designed to enable 20 gigawatts of compute for Anthropic and OpenAI. Blackstone and Apollo led the initial $35 billion financing.

Nvidia, the leading maker of AI chips, said this week it will provide up to $105 billion to finance a new data center for OpenAI in Ohio, according to a securities filing. A week earlier, Nvidia said it was partnering with six large asset managers on a $500 billion financing push designed to treat compute infrastructure as a new asset class.

Broadcom shares rose a little more than 1% on Friday.