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Barchart
Barchart
Anushka Dutta

What a $50 Billion Debt Deal Could Mean for Broadcom Stock

Global semiconductor company Broadcom (AVGO) is reportedly in talks to arrange more than $50 billion in debt financing to help OpenAI purchase custom AI chips that the two companies are developing together. Broadcom has reportedly approached private-credit firms, including Apollo Global Management (APO) and Blackstone (BX), as potential lenders. No formal decision has been made, and the deal is unlikely to be made before next year.

The AI infrastructure building frenzy has led companies to seek financing options, which could help OpenAI cover upfront hardware costs while it waits for its compute deployments to generate revenue. This is not the first time Broadcom has engaged in financing an AI chip deal, as it mirrors the $60 billion debt-financing deal to help Anthropic and other companies access AI chips and infrastructure.

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