Broadcom seeks up to $100 billion in debt financing for AI chip deal

Aug 20, 2026

Broadcom Inc. is negotiating with lenders, including Blackstone and Apollo Global Management, to raise up to $100 billion in debt to finance custom AI chips for Anthropic PBC and other clients. The deal, structured through an off-balance-sheet special-purpose vehicle, includes up to $70 billion in senior notes and $30 billion in junior notes. This massive capital push aims to help tech firms build custom accelerators to reduce their reliance on market leader Nvidia Corp., which is counter-mobilizing with its own $500 billion financing initiative.

Broadcom debt financing deal

▪Broadcom Inc. is in talks with lenders to raise between $60 billion and $100 billion in debt to finance artificial intelligence chips.
▪The proposed Broadcom Inc. debt financing structure includes a senior secured tranche of $45 billion to $70 billion and a junior tranche of $30 billion to $35 billion.
▪Broadcom Inc. is expected to guarantee a portion of the senior secured debt tranche, which will be issued through a special-purpose vehicle to keep it off the company's balance sheet.

Anthropic data center expansion

▪The AI XPV Platform partnership aims to facilitate more than 20 gigawatts of computing capacity for leading artificial intelligence laboratories, including Anthropic PBC and OpenAI Group PBC, by 2028.
▪Tom Curcuruto of Bank of America projected that Broadcom Inc.'s chip financing facility could expand to $370 billion in senior debt by mid-2029 to fund the 20-gigawatt capacity goal.
▪The AI XPV Platform, launched in June 2026 by Broadcom Inc., Apollo Global Management, and Blackstone, provided Anthropic PBC with an initial $35 billion in financing to add one gigawatt of computing capacity.

Custom AI chip development

▪Broadcom Inc. has custom chip design and supply agreements with major technology firms including Alphabet Inc., Meta Platforms Inc., Anthropic PBC, and OpenAI Group PBC.
▪In June 2026, Broadcom Inc. and OpenAI Group PBC debuted a jointly designed artificial intelligence inference accelerator chip named Jalapeño.
▪Broadcom Inc. expects its artificial intelligence chip business to generate more than $100 billion in revenue in 2027, with Anthropic PBC accounting for over 40% of that total.

Private credit firms participation

▪Blackstone and Apollo Global Management are in negotiations with Broadcom Inc. to participate as investors in the new debt financing deal.
▪Blackstone declined to comment, while Broadcom Inc. and Apollo Global Management did not immediately respond to requests for comment regarding the Bloomberg News report on the debt negotiations.

Nvidia market competition

▪Nvidia Corp. disclosed in a securities filing that it will provide up to $105 billion to finance a new data center for OpenAI Group PBC in Ohio.
▪Nvidia Corp. announced in August 2026 that it partnered with six asset managers, including Apollo Global Management and Blackstone, to secure over $500 billion in third-party financing for compute infrastructure.

AI infrastructure debt trend

▪Major technology hyperscalers, including Alphabet Inc., Amazon.com Inc., and Microsoft Corp., have indicated that capital spending on artificial intelligence will remain elevated through 2026.
▪Goldman Sachs Research predicts that total debt issuance associated with artificial intelligence infrastructure could reach nearly $500 billion by 2026.