Up to $100 billion! Broadcom (AVGO.US) plans massive AI chip financing to compete for Nvidia’s (NVDA.US) dominant market

According to Zhihui Finance APP, Broadcom (AVGO.US) is in talks with several lending institutions regarding a massive financing plan for artificial intelligence chips, aiming to raise more than $60 billion in debt to support Anthropic and other AI companies in acquiring chips and data center infrastructure. Sources familiar with the matter revealed that if the discussed subordinated debt portion is included, the total scale of the financing plan could reach as much as $100 billion.

According to sources, negotiations are still ongoing. Under the plan currently being discussed, the financing may include approximately $60–70 billion in senior secured debt, part of which will be guaranteed by Broadcom. In addition, stakeholders are considering adding about $30 billion of subordinated debt, bringing the potential financing total up to around $100 billion.

This deal would add another jumbo transaction to the frenzy of AI infrastructure financing. With the rapid growth of AI model scale and user demand, artificial intelligence companies such as Anthropic, the developer of Claude, are increasingly active in building data center and computing infrastructure to ensure sufficient computing power.

For Broadcom, the financing arrangement will also help expand its sales of AI chips and other data center equipment, further challenging Nvidia (NVDA.US) in the leading position of the artificial intelligence computing market.

Sources said that Blackstone (BX.US) and Apollo Global Management (APO.US) are in discussions with Broadcom to participate in this chip financing. The three companies established a partnership in June this year to jointly provide funding support for large-scale computing infrastructure projects. The debt is expected to be issued through a special purpose vehicle (SPV).

This potential financing plan would help companies like Anthropic obtain AI chips and other key infrastructure. Sources said the transaction structure might be similar to a previous $35 billion financing agreement, which was the first deal under the AI XPV partnership platform between Broadcom, Apollo, and Blackstone.

In the previous transaction, Broadcom supported most of the debt, while investors such as Apollo and Blackstone funded the purchase of custom AI chips and then leased these chips to Anthropic. Thanks to Broadcom's credit support, the senior debt portion was able to obtain investment-grade credit ratings, thereby reducing the overall cost of financing.

However, the new round of financing is still in the discussion stage, and the final size and specific structure could change. The funds could also be raised in phases, rather than all at once. Broadcom, Anthropic, Apollo, and Blackstone all declined to comment on the matter.

Previously, Broadcom and its partners developed the AI XPV platform to ultimately finance computing capacity exceeding 20 gigawatts. At this scale, the power demand is roughly equivalent to the generating capacity of 20 nuclear power plants, and the entire project is expected to require hundreds of billions of dollars in investment.

This massive capital requirement underscores the scale needed for global AI infrastructure construction. As technology companies race to build data centers, buy AI chips, and secure sufficient power resources, new types of debt financing transactions are rapidly increasing in both scale and speed, raising concerns among some investors about corporate leverage and credit market risks.

Earlier this month, Nvidia also announced that several major financial institutions, including BlackRock and Goldman Sachs, are raising more than $500 billion to support AI infrastructure construction.

Broadcom itself is rapidly expanding its AI business. The company's CEO stated in March that AI chip sales are expected to surpass $100 billion next year. In recent years, Broadcom has rapidly increased its position in the AI market by designing custom AI chips for major clients such as OpenAI.

In addition, Broadcom continues to expand partnerships with other major technology companies. In July this year, the company reached a cooperation agreement with Apple (AAPL.US) that will be extended until 2031 and is expected to be worth more than $30 billion.

As AI companies' demand for computing power continues to rise, Broadcom is further expanding its influence in the AI industry chain through chip supply, infrastructure collaboration, and innovative financing models. The financing plan, which could reach up to $100 billion, once again demonstrates that the global race for AI computing power is evolving from pure chip competition to a large-scale capital contest involving technology companies, private equity, and credit markets.