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Business

Broadcom arranging more than $50bn financing for OpenAI AI chip, WSJ reports

Broadcom is arranging more than $50bn in financing for the custom AI chip it is developing with OpenAI, the Wall Street Journal reported, as tech giants turn to debt to fund the AI build-out.

By Tom Ellery · · 1 min read

The Broadcom corporate headquarters sign and office buildings in Irvine, California (photographed 2007).
Photo: Coolcaesar, CC BY-SA 3.0, via Wikimedia Commons

Broadcom is arranging more than US$50 billion in financing for the custom artificial intelligence chip it is developing with OpenAI, the Wall Street Journal reported on Thursday.

Apollo Global Management and Blackstone are among the lenders in talks to participate in the deal, the Journal said, citing people familiar with the discussions. Oracle is separately talking to Apollo and Goldman Sachs to line up money for chip purchases, the newspaper reported.

The financing push is part of a wider wave of AI infrastructure deals as soaring data-centre costs force technology giants to seek new forms of funding. Reuters noted the Journal’s report added to media coverage of Broadcom, Oracle and SpaceX looking to raise money to buy AI chips.

Broadcom said in June it had established a financing platform with Apollo and Blackstone as anchor investors to fund more than 20 gigawatts of computing capacity for AI developers including Anthropic and OpenAI through 2028, beginning with an initial US$35 billion tranche led by Apollo. Bloomberg reported in August that Broadcom had held talks on more than US$60 billion in debt for an AI chip financing deal benefiting Anthropic and others.

Nigel Green, chief executive of deVere Group, warned the AI build-out, which “started on cash”, was “increasingly running on credit, and credit changes the risk profile entirely”.

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