Broadcom seeks more than US$60 billion in latest AI debt deal

Broadcom is in talks with lenders to raise more than US$60 billion in debt for an AI chip financing deal that will benefit Anthropic and other companies, according to Bloomberg News. The financing could include a roughly US$30 billion junior debt tranche and a senior-secured tranche of US$60 billion to US$70 billion, potentially bringing the total to US$100 billion. Blackstone and Apollo Global Management are among the lenders in talks, following a June partnership to finance a US$35 billion expansion of Anthropic's computing capacity.

Broadcom seeks more than US$60 billion in latest AI debt deal The company plays a crucial role in helping design custom chips for firms like Alphabet and Meta BROADCOM is in talks with a group of lenders to raise more than US$60 billion in debt for an AI chip financing deal that will benefit Anthropic and other companies, Bloomberg News reported on Thursday Aug 20 , citing people familiar with the matter. The financing could include a roughly US$30 billion junior debt tranche, while the chip designer would guarantee a part of a senior-secured tranche that could range from about US$60 billion to US$70 billion, the report said. The numbers under discussion would potentially bring the total raise to as much as US$100 billion, according to the report. Broadcom plays a crucial role in helping design custom chips for firms like Alphabet and Meta, as tech companies look to develop chips in-house to reduce their reliance on market leader Nvidia. Broadcom also has chip supply deals with Anthropic and OpenAI. Blackstone and Apollo Global Management are in talks with Broadcom to participate in the financing, the report added. Blackstone declined to comment, while Broadcom and Apollo did not immediately respond to Reuters’ requests for comment on the Bloomberg report. The potential financing follows a partnership that Broadcom, Apollo and Blackstone struck in June to finance a US$35 billion expansion of Anthropic’s computing capacity https://www.businesstimes.com.sg/startups-tech/startups/anthropic-tops-us30-billion-run-rate-seals-deal-broadcom using Broadcom‘s custom chips and networking solutions. The initial commitment was expected to add one gigawatt of computing capacity, while the partnership overall aims to enable more than 20 gigawatts of compute power for leading AI labs by 2028. The new debt would be issued by a special-purpose vehicle and could be similar to the US$35 billion agreement, Bloomberg News said. Tech companies have been increasingly turning to debt markets to fund their costly AI investments. The so-called hyperscalers, including Alphabet, Amazon and Microsoft, have signalled that spending on AI will remain elevated through 2026. BLOOMBERG Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Share with us your feedback on BT's products and services TRENDING NOW /pulse?ref=trending-now When every phone becomes a satellite phone, what happens to Asia’s telcos? Too little, too late? Manila’s billion-dollar bid to ignite its sputtering EV industry Japan Home closing outlets; staff say Valu$ taking over operations Timah Partners lands S$60 million facility from lenders including UOB, RHB