Broadcom and Oracle Reportedly Seek Over $50 Billion in Debt to Fund AI Chip Infrastructure

Broadcom Inc. (NASDAQ: AVGO) is reportedly pursuing more than $50 billion in financing to support custom artificial intelligence chips for OpenAI, according to a report from The Wall Street Journal. The financing discussions are reportedly being held with Apollo Global Management Inc. (NYSE: APO) and Blackstone Inc. (NYSE: BX). The proposed funding is intended to support several gigawatts of chip capacity for OpenAI, with Broadcom and OpenAI expecting the deal to close by the end of the year. Discussions remain preliminary, and the final amount could change, the report stated.

The financing is part of a broader trend where major technology companies are utilizing large debt deals and strategic investment partnerships to secure advanced computing capacity. Broadcom and OpenAI previously introduced a custom processor named Jalapeño in June, described as OpenAI’s first custom processor designed for large language model inference. OpenAI’s internal chip initiative, known as Nexus, includes custom processors named after peppers, with its first two generations being Jalapeño and Serrano.

Separately, Oracle Corp. (NYSE: ORCL) is negotiating with Apollo and Goldman Sachs Group Inc. (NYSE: GS) to raise money for a substantial chip purchase, the publication reported. Broadcom, OpenAI, and Oracle did not immediately respond to a request for comments from Benzinga.

In other related financing news, Broadcom has reportedly agreed to provide up to $42 billion in lending to support Anthropic’s computing needs. Anthropic has committed to a five-year, $125.2 billion lease for Google Tensor Processing Units (TPUs) capacity. Broadcom is also partially guaranteeing a $60 billion debt package being syndicated by banks, which could help reduce Anthropic’s borrowing costs. Additionally, SpaceX (NASDAQ: SPCX) is reportedly planning to raise about $40 billion, including nearly $10 billion in bank loans and $30 billion in investment-grade debt, led by Apollo, to purchase chips from NVIDIA Corp. (NASDAQ: NVDA), with the transaction expected to close in 2027.