Broadcom Could Raise Up to $80 Billion As Anthropic AI Buildout Drives Massive Financing Push

Broadcom is in talks to raise as much as $70 billion to $80 billion in debt to finance chips and computing infrastructure for artificial intelligence companies, including Anthropic, in another sign of the extraordinary amounts of capital flowing into the AI buildout.

The proposed financing would be divided into multiple layers of debt, CNBC's David Faber reported. The senior tranche, which would have priority for repayment, is expected to total roughly $45 billion, while a junior tranche could reach about $35 billion. The figures remain fluid as negotiations continue.

Bloomberg, which first reported the talks, said the overall transaction could ultimately reach $100 billion. Blackstone and Apollo Global Management are among the investment firms discussing participation in the financing.

The enormous capital requirements come as technology companies race to secure the chips, data centers, electricity and networking equipment needed to train and operate increasingly sophisticated AI models. Broadcom has emerged as an important player in that expansion, particularly through its custom AI accelerators and networking technology.

In June, Broadcom announced a new AI platform designed to enable 20 gigawatts of computing capacity for customers including Anthropic and OpenAI. Blackstone and Apollo led an initial $35 billion financing connected to the initiative.

The latest discussions could dramatically expand that funding. The sums involved are becoming comparable to major infrastructure projects rather than conventional technology investments, as companies seek ways to fund facilities that can cost tens of billions of dollars.

Nvidia, the dominant supplier of AI processors, is pursuing similarly massive financing arrangements. The company said this week that it would provide up to $105 billion in financing for a new OpenAI data center in Ohio, according to a securities filing.

The announcement followed Nvidia's disclosure a week earlier that it was partnering with six major asset managers, including Blackstone and Apollo, on a $500 billion financing initiative aimed at establishing computing infrastructure as a new investment asset class.

Chipmakers are no longer simply selling processors to technology companies. They are increasingly helping assemble the capital required to purchase those chips and construct the infrastructure where they will operate.

For private equity firms, private credit managers and institutional investors, the AI expansion also presents an opportunity to finance long-lived physical assets tied to demand for computing power.

The strategy carries significant financial exposure. Data centers require enormous upfront investments, while rapid advances in semiconductor technology can shorten the useful life of expensive computing equipment. Investors must also assess whether future AI revenue will justify the unprecedented infrastructure spending now underway.

Broadcom, however, is benefiting from strong demand as hyperscalers and AI developers seek alternatives and complements to Nvidia's GPUs. Its custom chips and networking products have positioned the company as one of the major beneficiaries of spending by the world's largest AI developers.