Broadcom reportedly seeks over $50 billion to finance OpenAI custom AI chips
In short
Broadcom is seeking more than $50 billion in financing for custom AI chips it is building for OpenAI, Chinese outlets CLS and Yicai reported on October 8. IT Home, citing The Wall Street Journal, said Broadcom has held early talks with private credit firms including Apollo Global Management and Blackstone, and that the size of the deal may change. Citing Bloomberg, IT Home said early discussions pointed to about $30 billion of debt.
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Broadcom is seeking more than $50 billion in financing for custom AI chips it is developing for OpenAI, according to reports carried by Chinese financial outlets CLS and Yicai on October 8. CLS described the figure as reported; Yicai said Broadcom plans to raise the sum for the OpenAI custom chip project. [ 1 , 2 ]
IT Home, citing The Wall Street Journal and Bloomberg, reported that Broadcom has been arranging the financing in recent weeks and has held early talks with private credit firms including Apollo Global Management and Blackstone. People familiar with the matter said the negotiations are at an early stage and the size of the financing may change. According to those people, the financing could cover several gigawatts of OpenAI chip capacity and is expected to be completed before the end of this year. Representatives of Broadcom and OpenAI declined to comment. [ 3 ]
Bloomberg's account, as reported by IT Home, differed on the amount: it said early discussions indicated the parties may seek to raise about $30 billion of debt, that no formal process had begun, and that plans could still change. Bloomberg also said the new financing follows a large debt financing Broadcom arranged for Anthropic, under which Broadcom is raising $60 billion for new AI chips for Anthropic and other companies, including a $42 billion senior secured loan tranche and an $18 billion junior debt tranche led by Blackstone. [ 3 ]
Broadcom and OpenAI previously announced a partnership to develop 10 gigawatts of custom AI chip systems, to be deployed from the second half of 2026 through the end of 2029, IT Home reported. OpenAI internally calls the project "Nexus", with first- and second-generation chips code-named Jalapeño and Serrano. IT Home framed the deal as part of a series of large private debt financings driven by the funding needs of AI infrastructure. [ 3 ]
Why it matters
IT Home presented the deal as one of several large private debt financings driven by the funding needs of AI infrastructure. If completed, the financing could cover several gigawatts of OpenAI chip capacity, according to people cited in the report.
Key facts
- Broadcom is seeking more than $50 billion in financing for custom AI chips for OpenAI. [ 1 , 2 , 3 ]
- Citing The Wall Street Journal, IT Home reported that Broadcom has held early talks with private credit firms including Apollo Global Management and Blackstone. [ 3 ]
- People familiar with the matter said talks are at an early stage and the size of the financing may change. [ 3 ]
- Bloomberg reported early discussions pointed to raising about $30 billion of debt, with no formal process started, according to IT Home. [ 3 ]
- The financing could cover several gigawatts of OpenAI chip capacity and is expected to be completed before the end of this year, according to people cited in the report. [ 3 ]
- OpenAI internally calls the chip project "Nexus"; the first- and second-generation chips are code-named Jalapeño and Serrano. [ 3 ]
- Representatives of Broadcom and OpenAI declined to comment. [ 3 ]
Confirmed by several sources
Still unclear
- The size of the financing: more than $50 billion or about $30 billion of debt. IT Home cites The Wall Street Journal for over $50 billion and Bloomberg for about $30 billion of debt; both say plans may change.
- Which lenders will take part. Only IT Home names Apollo and Blackstone, and describes the talks as early-stage.
- Timing of completion. The end-of-year target comes from unnamed people cited in a single outlet's report.
What local media are saying
Timeline, local time
- CLS reports Broadcom is reportedly seeking over $50 billion to finance OpenAI custom AI chips. [ 1 ]
- Yicai reports Broadcom plans to raise over $50 billion for the OpenAI custom chip project. [ 2 ]
- IT Home publishes details citing The Wall Street Journal and Bloomberg, including talks with Apollo and Blackstone. [ 3 ]