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Broadcom Reportedly Seeks to Raise $60 Billion to Fund Chip Purchases for Anthropic and Others
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Bloomberg reported on October 2, citing people familiar with the matter, that a Wall Street syndicate of banks arranging financing for Broadcom has begun raising $60 billion to finance AI chips, with companies such as Anthropic set to benefit. At the exchange rate cited in the report, $60 billion is equivalent to RMB 402.873 billion. The financing plan has been in preparation for several weeks and has attracted attention from industry participants on Wall Street and in Silicon Valley.
The banks participating in the financing are preparing to issue syndication invitations for $42 billion of Class A senior secured debt. Another $18 billion of Class B subordinated debt will be arranged by a group led by Blackstone. Multiple funds under Blackstone have committed $9 billion, equivalent to approximately RMB 60.431 billion. The remaining portion is expected to be distributed to other investors.
The financing comes amid public opposition to the construction of data centers, with the market hoping to use the deal to determine whether investors remain willing to provide funding for the expansion of AI infrastructure. Broadcom hopes to increase sales of chips and other data-center equipment and compete with Nvidia. Demand for computing power from AI companies such as Anthropic is also continuing to grow.
People familiar with the matter revealed in August that, if the transaction is completed, companies such as Anthropic will have easier access to chips and other critical AI infrastructure. Previously, hundreds of billions of dollars had been raised through borrowing to build AI infrastructure, with most of the funds going toward data centers. At the same time, transactions providing financing for chips and servers have been increasing.
In August of this year, Nvidia announced that it was partnering with six major financial institutions, including Blackstone, to plans to raise more than $500 billion for the AI sector. One of the intended uses is to help customers obtain financing to purchase Nvidia chips. Blackstoneās earlier investment in Anthropic also helped improve the performance of its private equity fund targeting wealthy investors. Blackstone is also participating in Broadcomās current financing round.
If the $60 billion financing is completed, companies such as Anthropic will be able to procure chips and obtain critical infrastructure more easily, while Broadcom is expected to increase sales of related equipment. Whether the transaction can be completed, and whether investors will continue providing funding amid controversy over data-center construction, will be key areas for the market to monitor going forward. Nvidiaās fundraising plan of more than $500 billion represents another large-scale AI-chip financing arrangement.
