Broadcom seeks more than $60bn in debt for AI chip deal

Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) , the US semiconductor company, is in talks to raise more than $60 billion in debt to fund a financing deal that would supply AI chips to Anthropic and other companies.

That is according to Bloomberg, which cited people familiar with the matter.

The talks point to the scale of borrowing now being lined up to build out AI computing capacity.

The financing could include a junior debt tranche of roughly $30 billion, according to the report.

A tranche is a slice of a larger borrowing, each carrying its own risk and repayment terms.

Broadcom would guarantee part of a senior-secured tranche that could range from about $60 billion to $70 billion.

Senior-secured debt ranks first for repayment and is backed by specific assets, making it lower risk than junior debt.

Taken together, the sums under discussion could bring the total raise to as much as $100 billion.

A deal of that size would rank among the largest corporate financings tied to the AI boom.

Blackstone and Apollo Global Management (NYSE:APO) , two of the largest US private capital firms, are in talks to take part in the financing.

Their involvement would follow a partnership the three companies struck in June.

Private capital firms have moved increasingly into lending for AI infrastructure as banks reach the limits of what they will underwrite alone.

Broadcom , Apollo and Blackstone did not immediately respond to requests for comment on the Bloomberg report.

The figures under discussion have not been formally confirmed.

The deal would channel funding towards chips for Anthropic, the company behind the Claude chatbot.

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