Broadcom is in discussions to secure between $70 billion and $80 billion in debt, primarily to finance artificial intelligence initiatives, including support for companies like Anthropic. The financing structure is expected to consist of a senior tranche of approximately $45 billion and a junior tranche of around $35 billion, although these figures may change.
This move comes as chipmakers are facing unprecedented capital requirements to meet the surging demand for AI technologies. Notably, Broadcom had previously announced an AI platform capable of delivering 20 gigawatts of compute power for Anthropic and OpenAI.
The financing effort is part of a broader trend, with Nvidia also announcing a significant $105 billion investment for a new data center for OpenAI in Ohio and collaborating with major asset managers on a $500 billion financing initiative aimed at establishing compute infrastructure as a new asset class. Following the news, Broadcom's stock saw a slight increase of over 1% on Friday