Aug 20 (Reuters) – Broadcom is in talks with a group of lenders to raise more than $60 billion in debt for an AI \u200cchip financing deal that will benefit Anthropic and other companies, \u200cBloomberg News reported on Thursday, citing people familiar with the matter. <\/p>\n
The financing could include a roughly $30 \u200bbillion junior debt tranche, while the chip designer would guarantee a part of a senior-secured tranche that could range from about $60 billion to $70 billion, the report said. <\/p>\n
The numbers under discussion would potentially bring the total raise to as much \u200cas $100 billion, according to \u2060the report. <\/p>\n
Broadcom plays a crucial role in helping design custom chips for firms like Alphabet and Meta, as tech companies \u2060look to develop chips in-house to reduce their reliance on market leader Nvidia. Broadcom also has chip supply deals with Anthropic and OpenAI. <\/p>\n
Blackstone and Apollo Global Management \u200bare \u200bin talks with Broadcom to participate in \u200bthe financing, the report added. <\/p>\n
Blackstone \u200cdeclined to comment, while Broadcom and Apollo did not immediately respond to Reuters’ requests for comment on the Bloomberg report. <\/p>\n
The potential financing follows a partnership that Broadcom, Apollo and Blackstone struck in June to finance a $35 billion expansion of Anthropic’s computing capacity using Broadcom’s custom chips and networking solutions. <\/p>\n
The initial \u200ccommitment was expected to add one gigawatt \u200bof computing capacity, while the partnership overall aims \u200bto enable more than 20 \u200bgigawatts of compute power for leading AI labs by 2028. <\/p>\n
The \u200cnew debt would be issued by \u200ba special-purpose vehicle \u200band could be similar to the $35 billion agreement, Bloomberg News said. <\/p>\n
Tech companies have been increasingly turning to debt markets to fund their costly \u200bAI investments. The so-called \u200chyperscalers, including Alphabet, Amazon and Microsoft, have signaled that spending on AI \u200bwill remain elevated through 2026. <\/p>\n
(Reporting by Anzar Mehraj in Bengaluru; Editing \u200bby Diti Pujara and Leroy Leo) <\/p>\n","protected":false},"excerpt":{"rendered":"Aug 20 (Reuters) – Broadcom is in talks with a group of lenders to raise more than $60…\n","protected":false},"author":2,"featured_media":648020,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,63649,289,290,1396,14229,26663,43416,18,19,17,66087,82],"class_list":["post-648019","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-apollo-global-management","tag-artificial-intelligence","tag-artificialintelligence","tag-blackstone","tag-bloomberg-news","tag-broadcom","tag-custom-chips","tag-eire","tag-ie","tag-ireland","tag-tech-companies","tag-technology"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/117130242576744088","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/648019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=648019"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/648019\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/648020"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=648019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=648019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=648019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}