The proposed financing follows a partnership that Broadcom struck with Apollo, and Blackstone, in June to invest $35 billion to expand Anthropic’s computing capacity using Broadcom’s custom AI-chips. The potential numbers in discussion, this time can rise as much as $100 billion.
Broadcom is discussing with various lenders to raise $60 billion to build custom artificial intelligence (AI) chips to be used by Anthropic, Bloomberg reported on Thursday, citing people familiar with the matter.
The financing will include $30 billion of junior debt tranche, while the chip designer will guarantee a part of senior debt tranche, that can range from $60 billion to $70 billion. The potential numbers in discussion can rise as much as $100 billion.
Broadcom designs custom chips for Apple and Meta, as these firms look to reduce their overdependence on market leader, Nvidia. Blackstone and Apollo are in talks with Broadcom as potential lenders, according to the report.
The proposed financing follows a deal struck by Broadcom, Apollo and Blackstone in June to invest $35 billion to expand Anthropic’s computing capacity using Broadcom’s custom AI-chips.
The initial commitment was expected to add 1 gigawatt (GW) of computing capacity, while the overall partnership aims to enable 20 GW of computing power for leading AI labs by 2028.
The proposed deal signals how big-tech and hyperscalers are increasingly moving towards debt market to fund their costly AI investments.
