Broadcom plans US$50 billion financing for OpenAI chips, WSJ says
The AI build-out has prompted tech giants to seek new forms of financing
[SAN FRANCISCO] Broadcom is arranging more than US$50 billion in financing for the custom artificial intelligence chip it is developing with OpenAI, part of a surge in deals to pay for AI infrastructure, the Wall Street Journal reported.
Apollo Global Management and Blackstone are among the lenders in talks to participate in the deal, the Journal said, citing unidentified people familiar with the discussions.
Oracle, meanwhile, is talking to Apollo and Goldman Sachs to line up money for the purchase of chips, the newspaper reported.
The companies are seeking the deals in the face of soaring costs to outfit data centres.
The AI build-out – meant to support a proliferation of software and services – has prompted tech giants to seek new forms of financing.
Broadcom had already said in June that it had established a platform, with Apollo and Blackstone as anchor investors, to help finance more than 20 gigawatts in computing capacity for AI developers including Anthropic and OpenAI through 2028.
The platform began with an initial tranche of US$35 billion led by Apollo, in partnership with Blackstone.
Bloomberg reported in August that Broadcom held 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
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