Broadcom plans to raise $30 billions in debt financing for OpenAI, accelerating the shift towards leveraged AI computing power expansion.
Broadcom is in preliminary talks to raise about $30 billion in debt financing for OpenAI, to support the latter's purchase of custom AI chips co-developed by both parties. With the high costs of building data centers, AI computing expansion is increasingly relying on debt leverage, and companies such as Oracle and SpaceX are also seeking similarly large-scale funding. Previously, Broadcom initiated $60 billion in debt financing to support Anthropic's AI development.
After launching a $60 billion debt financing for Anthropic PBC, Broadcom is now planning to provide around $30 billion in funding support for OpenAI’s custom chip procurement. This move signals that the close relationship between chip manufacturers and AI developers is extending from technical cooperation to the capital level.
On October 8, according to Bloomberg citing sources, Broadcom has begun preliminary discussions to arrange financing to help OpenAI purchase jointly developed custom AI chips. The sources said: “No formal procedures have been initiated yet, and the plan may still change, but preliminary negotiations suggest the two companies may seek to raise around $30 billion in debt for OpenAI’s chips.”
This potential deal highlights the enormous capital expenditure required for AI computing expansion and reveals a shift in the industry’s financing model. Facing the rising costs of equipping data centers, technology companies are actively seeking new ways of financing to support the rapid proliferation of software and services. Debt financing is becoming a key tool, replacing traditional equity financing, to underpin the vast construction of AI infrastructure.
Currently, representatives for Broadcom, OpenAI, and potential participant Blackstone have all declined to comment on the matter.
Tech giants flock to the debt market as AI infrastructure financing surges
The talks between Broadcom and OpenAI are not isolated; recently, the market has seen several large-scale deals aimed at funding AI infrastructure expenses.
According to The Wall Street Journal, Oracle is currently holding independent talks with Apollo Global and Goldman Sachs to raise funds for its chip procurement.
In addition, according to Bloomberg, Elon Musk’s SpaceX has begun negotiations with banks and investors, planning to raise $40 billion to purchase Nvidia’s chips. Sources noted that this transaction is expected to be completed by 2027. It is not yet clear how quickly Broadcom’s latest financing plan will be finalized.
$60 billion financing paves the way as Broadcom builds a capital platform for computing power
Before engaging with OpenAI, Broadcom had already established a vast operating framework in the field of AI debt financing.
According to a previous Bloomberg report, last week Broadcom began advancing a $60 billion debt package supporting Anthropic. Banks involved have started sending syndication letters of intent for the $42 billion Class A senior secured portion of the loan. At the same time, Blackstone is leading the $18 billion Class B subordinated debt and has committed $9 billion from its various funds.
In June this year, Broadcom publicly stated that it had established a platform with Apollo Global Management Inc. and Blackstone as cornerstone investors. This platform aims to provide financing support for more than 20 gigawatts of computing power for AI developers including Anthropic and OpenAI by 2028. Fulfilling this agreement will require hundreds of billions of dollars.
Binding core clients, custom chip strategy accelerates rollout
Behind these capital operations is Broadcom’s deep binding with leading AI labs in the custom chip business.
In June this year, OpenAI and Broadcom CEO Hock Tan jointly announced their custom Jalapeno chip. The first batch of accelerators for running AI tasks will be deployed later this year, with broader rollout planned for 2027.
Measured by energy consumption—a standard for data center capacity—Broadcom is expected to deliver chips equivalent to 5 gigawatts of computing power to OpenAI by 2028. Hock Tan anticipates that this AI lab will become Broadcom’s second largest custom chip client.
At the same time, Anthropic will occupy the top spot in Broadcom’s custom chip business. Hock Tan stated in September that Anthropic will become the business’s largest client in 2027. Broadcom plans to deliver chips equivalent to 5 gigawatts of computing power to Anthropic next year and another 10 gigawatts the year after.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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