Sources familiar with the matter said Broadcom (AVGO) has begun a $60 billion fundraising effort through its Wall Street banking group to finance new AI chips, with beneficiaries including Anthropic and other companies.
The banks involved in this massive debt financing are preparing to send syndication invitations to potential lenders for a $42 billion Class A senior secured loan, the sources said. Blackstone Group LP (BX) is leading the $18 billion Class B subordinated debt financing and plans to commit $9 billion through multiple funds under its management, with the remainder to be raised through syndication. The sources declined to be named because the deal has not yet been announced. Representatives for Broadcom declined to comment.
The financing package has been in the works for weeks, and industry insiders on Wall Street and in Silicon Valley are closely watching its progress to gauge whether investors remain willing to fund AI infrastructure expansion amid public opposition to data center construction. Broadcom is seeking to sell more chips and other data center equipment to compete with Nvidia, while AI companies like Anthropic need ever-increasing computing power. Sources said in August that the potential deal would help companies including Anthropic obtain chips and other critical AI infrastructure.
This financing will join the hundreds of billions of dollars in debt already raised for AI infrastructure buildout. While a large portion has gone toward data centers, financing deals to fund chips and servers are also increasingly common. In August, Nvidia also announced partnerships with six major financial institutions, including Blackstone, aiming to mobilize more than $500 billion in AI investment, including helping customers finance Nvidia chip purchases. Meanwhile, Blackstone's investment in Anthropic has also helped boost the performance of one of its private equity funds targeting wealthy individual investors.
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