Broadcom (explore this topic) Seeks Over $60 Billion in Debt to Fund AI Chips for Anthropic
Broadcom is in talks with lenders to raise more than $60 billion in debt, Bloomberg reported on Thursday. This financing would be used to support AI chips for Anthropic and other companies. The figures under discussion could reach as high as $100 billion.
Details of the Financing
The proposed package consists of:
- A junior tranche of approximately $30 billion
- A senior-secured tranche in the range of $60 billion to $70 billion, according to Bloomberg
Broadcom would guarantee a portion of the senior tranche. The debt would be issued through a special-purpose vehicle (SPV), a separate legal entity that holds specific assets as collateral for the borrowing.
Previous Partnership and Financing
In June, Broadcom, Apollo Global Management, and Blackstone formed the AI XPV partnership, raising $35 billion in their first transaction to expand Anthropic's computing capacity using Broadcom custom chips and networking equipment. Reuters reported on the terms, and The Next Web (TNW) covered it initially.
Broadcom's Position
Broadcom designs custom chips for major tech companies like Alphabet and Meta, and has supply agreements with Anthropic and OpenAI. Its CEO predicted in March that AI chip sales would exceed $100 billion next year. The company holds a significant Apple agreement valued at over $30 billion and signed a $200 billion deal with Samsung in July covering memory, foundry, and advanced packaging through 2030.