Broadcom Negotiates Up to $100 Billion Debt for AI Infrastructure

Broadcom Inc. is negotiating with lenders to raise between $70 billion and $100 billion in debt to finance artificial intelligence chips and computing infrastructure for clients including Anthropic and OpenAI. The financing would utilize a special-purpose vehicle to purchase Broadcom hardware and lease it to end tenants, an off-balance sheet arrangement designed to lower the capital barrier for large-scale AI buildouts.

The proposed structure has evolved across negotiations, initially described as a senior-secured tranche of $60 billion to $70 billion and a $30 billion junior tranche. More recent reports suggest a senior tranche of approximately $45 billion and a junior tranche of $35 billion. Investment firms Blackstone and Apollo Global Management are in talks to participate, building on a June partnership that established a $35 billion agreement to expand computing capacity.

This initiative is part of a broader effort to enable 20 gigawatts of compute power by 2028, with Broadcom expecting AI semiconductor revenue to grow from $56 billion in fiscal 2026 to over $100 billion in fiscal 2027. The move mirrors similar massive financing trends from Nvidia, which is pursuing a $500 billion initiative with Wall Street firms and providing up to $105 billion for an OpenAI data center in Ohio.

Despite the expansion, Broadcom shares recently faced a weekly decline following Alphabet's deal with competitor Marvell. Additionally, the scale of the borrowing caused a spike in Broadcom's Credit Default Swaps, reflecting investor concern over the debt levels required to sustain AI growth.