Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.<\/p>\n
Broadcom Inc. CEO Hock Tan said Wednesday the company is helping finance custom artificial intelligence chips for large language model developers, highlighting the enormous infrastructure costs facing AI companies such as Anthropic and OpenAI as they race to scale their models.<\/p>\n
In the company\u2019s second-quarter earnings call on Wednesday, Tan said Broadcom was partnering with Apollo Global Management and Blackstone to create an AI XPU platform that will fund custom AI chips for LLM developers, helping them secure the massive computing capacity needed to train and deploy increasingly advanced AI models.<\/p>\n
Apollo, Blackstone To Help With Financing <\/p>\n
The initiative is expected to deploy more than 20 gigawatts of compute capacity by 2028, with Apollo launching the platform\u2019s first $35 billion tranche.<\/p>\n
Don’t Miss:<\/p>\n
Tan said the effort is aimed at addressing rapidly growing demand from AI customers, which are consuming increasingly large volumes of tokens as model usage scales.<\/p>\n
\u201c\u2026.creating in partnership with guys, with the best balance sheets around, a vehicle to basically have these chips funded for these LLM players who otherwise might have difficulty getting access to our technology, which provides them with the lowest power and the lowest cost,\u201d Tan added.<\/p>\n
AI Customers Lock In Compute Capacity Years In Advance <\/p>\n
Securing AI computing capacity now requires years of planning, with customers needing to coordinate chip production, memory supply, power availability and data center infrastructure before deploying new systems.<\/p>\n
Broadcom\u2019s customers are placing orders well ahead of deployment timelines, Tan said, giving greater visibility into future demand than is typical in the semiconductor industry.<\/p>\n
Trending: Avoid the #1 Investing Mistake: How Your \u2018Safe’ Holdings Could Be Costing You Big Time<\/a><\/p>\n He added that the demand visibility now extends through 2028, compared with 2027 just three months ago, reflecting growing confidence in long-term AI infrastructure spending.<\/p>\n Broadcom\u2019s earnings, outlook top analysts\u2019 expectations <\/p>\n Broadcom topped earnings expectations in the second quarter, reporting adjusted earnings of $2.44 per share versus analyst estimates of $2.40 per share. Revenue was $22.19 billion, narrowly missing consensus expectations of $22.27 billion.<\/p>\n The company also issued a strong outlook, projecting third-quarter revenue of roughly $29.4 billion, above estimates of $28.54 billion, and adjusted EBITDA equal to about 68% of revenue.<\/p>\n Image via Shutterstock<\/p>\n Read Next:\u00a0<\/p>\n Building Wealth Across More Than Just the Market <\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.<\/p>\n Arrived <\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100<\/a>. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.<\/p>\n Vinovest <\/p>\n Fine wine and rare whiskey have historically moved independently of the stock market, making them a compelling alternative asset. Vinovest manages authenticated, insured portfolios of investment-grade wine and whiskey starting at $5,000<\/a> \u2014 sourcing, storage, and insurance all handled for you.<\/p>\n FarmTogether <\/p>\n Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000<\/a> \u2014 fully managed, with no landlord headaches.<\/p>\n EquityMultiple <\/p>\n For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000,<\/a> with only ~5% of opportunities passing their due diligence process.<\/p>\n Bitcoin IRA\u00a0 <\/p>\n