Broadcom Lines Up $60B Plus AI Debt Deal as Chip Financing Surges
Synopsis
The chipmaker is seeking more than $60 billion from lenders for an AI financing package benefiting Anthropic and other companies, with Broadcom expected to guarantee part of a 60 billion to 70 billion senior debt tranche, Bloomberg News reported.
Broadcom AI debt deal discussions are focused on raising over $60 billion from creditors for a new financing arrangement for AI chips, which would benefit Anthropic and others, according to people familiar with the matter.
The proposed Broadcom AI debt deal would have included $100 billion in total funding. It has approximately $30 billion of junior debt and the senior secured notes would have been between $60 billion and $70 billion.
Broadcom would have retained equity ownership in the senior debt. Proceeds would have come from a special purpose vehicle, in which Apollo Global Management and Blackstone are reported to have invested. Broadcom, Apollo, and Blackstone have not commented on the most recent discussions.
AI Chip Revenue Reaches $10.8 Billion
Broadcom AI debt deal comes as the company’s AI semiconductor business grows. Broadcom’s revenue for the fiscal second quarter reached $22.19 billion, up 48 percent from the year-ago period.
AI semiconductors rose 143 percent year over year to generate $10.8 billion, due to the need for custom AI accelerators and networking products. Broadcom also generated $10.26 billion free cash flow for the quarter.
The funding comes after a separate $35 billion deal struck in June between Broadcom, Apollo, and Blackstone to fund Anthropic’s expansion in cloud infrastructure. The initial target was 1 gigawatt, with the expectation of surpassing 20 gigawatts by 2028.
Debt Funding Grows Across AI Infrastructure
Broadcom AI debt deal is the latest in a series of external financings arranged for large-scale infrastructure projects. Broadcom’s AI financing vehicle is set to secure $370 billion of senior debt by 2029, according to Bank of America analysts, following their prior reports on the topic.
Banks and investment funds play a significant role in Nvidia’s stand-alone $500 billion+ program to finance AI infrastructure.
The capacity of infrastructure is a critical factor in the investment. According to the United States’ 2026 AI Index Report from Stanford University, the nation’s 5,427 AI data centers exceeded rivals by more than ten times, compared to 449 in China and 529 in Germany.
While cloud and data-center construction funds dominate in Australia, they are driven by corporations in the United States that currently constitute the majority of the AI computing infrastructure.
Source: Yahoo Finance
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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