Broadcom Plans to Raise Over $60 Billion to Boost Anthropic and OpenAI Chip Business

TradingKey - According to Bloomberg, citing people familiar with the matter, Broadcom (AVGO) is in discussions with multiple lenders to raise more than $60 billion in debt financing to support chip procurement and computing power infrastructure construction for artificial intelligence companies such as Anthropic. Under the plan currently under discussion, the total financing size could ultimately even approach $100 billion.

The deal could reportedly include about $60 billion to $70 billion in senior secured debt, along with roughly $30 billion in subordinated debt, with Broadcom potentially guaranteeing a portion of the senior debt. Major investment firms such as Blackstone and Apollo Global Management are participating in the discussions. The financing plan remains under negotiation, and the final size and specific structure could still change.

This is not the first time Broadcom has leveraged financial institutions to help AI clients expand computing capacity. In June this year, Broadcom established an AI XPU financing platform with Apollo and Blackstone, with an initial scale of approximately $35 billion, primarily to help Anthropic build AI data centers. The platform's long-term goal is to support more than 20GW of AI computing infrastructure by 2028, with these projects relying heavily on Broadcom's custom AI chips and networking products.

Behind this $60 billion-plus financing plan is the rapidly growing demand for computing power from AI companies such as Anthropic and OpenAI. Broadcom has already established large-scale computing power cooperation with Anthropic and is supplying custom AI chips to OpenAI. The company's management previously stated that the scale of computing power required by Anthropic and OpenAI in the future has significantly exceeded expectations from just a few months ago.

For Broadcom, the core significance of this model lies in helping clients relieve the financial pressure of purchasing vast quantities of AI chips while expanding its own chip sales volume. The massive financing also indicates that commercial and financial ties between Broadcom and its AI clients are deepening further. If the financing successfully materializes, it will help clients such as Anthropic and OpenAI lock in more computing power in advance and directly expand potential orders for Broadcom's custom AI chips and networking products. Nvidia (NVDA) has also recently adopted a similar strategy, providing financing support or guarantees for data center projects of clients such as OpenAI.