Broadcom’s $80 billion AI bet: Massive debt raise to fund chips for Anthropic

The money would be used to build more custom AI chip capacity for artificial intelligence companies, with Anthropic expected to be one of the main beneficiaries. 

The size of the deal would make it one of the biggest corporate debt raises linked to the AI boom so far. It also shows how much outside money is now being used to build the huge amount of computing power needed by leading AI companies. 

How much money is Broadcom looking to raise? 

Broadcom, Apollo and Blackstone have not confirmed the final terms, which could still change. CNBC reported that lenders are considering a senior tranche of about $45 billion and a junior tranche of around $35 billion. Senior debt is repaid first and is generally considered less risky.

Bloomberg reported a different structure, with a junior tranche of about $30 billion and a senior-secured tranche of between $60 billion and $70 billion.

Depending on how the final deal is structured, Broadcom could therefore raise anywhere from $70 billion to $100 billion. 

The debt is expected to be issued through a special-purpose vehicle, or SPV. This is a separate company created specifically to hold the debt and the chip-related assets. It keeps the borrowing separate from Broadcom’s main balance sheet. 

The structure is similar to a $35 billion deal announced by the same group of companies in June. Private equity firms Blackstone and Apollo Global Management are reportedly considering investing in the deal. Neither the parties involved nor Broadcom has confirmed the talks. 

Deal builds on $35 billion June agreement 

The latest financing talks are an extension of a partnership Broadcom, Apollo and Blackstone announced in June. 

Under that deal, the three companies committed $35 billion to expand Anthropic’s computing infrastructure using Broadcom’s custom AI chips and networking equipment. 

Broadcom agreed to “backstop” most of the senior debt, meaning it would provide support for that part of the borrowing. Apollo and Blackstone, meanwhile, financed the purchase of the chips. That arrangement reportedly helped the senior debt receive investment-grade credit ratings and reduced the cost of borrowing. 

Anthropic does not buy all the chips itself under this model. Instead, outside investors pay for the hardware and lease it to Anthropic. This allows the AI company to get access to huge amounts of computing power without having to pay the entire cost upfront or carry the full expense on its own books. 

Anthropic plans a huge expansion in computing power 

The original June deal was expected to add about one gigawatt of computing capacity for Anthropic.

But the wider partnership has much bigger ambitions. Broadcom, Apollo and Blackstone are targeting more than 20 gigawatts of computing capacity for leading AI companies by 2028.

The cost could run into hundreds of billions of dollars.

To put that figure into perspective, 20 gigawatts is roughly equal to the output of 20 nuclear power plants.

Broadcom is becoming a bigger player in AI chips 

Broadcom has become an important player in the AI chip market by designing custom chips, known as application-specific integrated circuits, or ASICs. 

Its customers include Alphabet, Meta, Anthropic and OpenAI.

The business gives Broadcom a major role alongside Nvidia. Nvidia remains the biggest supplier of general-purpose AI chips, but major technology companies are more and more developing custom chips that are designed for their own AI systems and workloads.

Anthropic’s relationship with Broadcom has also grown as the AI company has expanded its computing partnership with Google. 

In October 2025, Anthropic said it planned to use up to one million of Google’s Tensor Processing Units, or TPUs. Broadcom helps design and manufacture those chips. 

The deal was worth tens of billions of dollars and was expected to add more than one gigawatt of computing capacity in 2026.

The partnership grew again in April, when Anthropic and Google signed another agreement covering about 3.5 gigawatts of TPU-based computing capacity starting in 2027.

The agreement was part of Anthropic’s plan to invest more than $50 billion in computing infrastructure in the US. 

Broadcom’s AI business is growing fast 

Broadcom’s growing role in AI has already started showing up in its financial results.

The company reported $10.8 billion in AI semiconductor revenue in its most recent quarter. That works out to an annualised run rate of nearly $43 billion. Broadcom executives have also said they believe AI chip revenue could eventually rise above $100 billion a year. 

The AI industry is turning to debt and outside investors to fund its huge infrastructure needs. Companies are spending billions on data centres, AI chips and computing power, far beyond what their own cash can cover.

Nvidia said it will provide up to $105 billion to help finance a new OpenAI data centre in Ohio. It has also announced a separate $500 billion financing push with asset managers including BlackRock and Goldman Sachs.

For Anthropic, the Broadcom deal is just one part of a much bigger plan to raise money and expand its AI infrastructure. 

Anthropic is growing fast but spending heavily 

Anthropic’s second-quarter revenue crossed $11.5 billion, compared with $787 million a year earlier. Its annualised revenue run rate had reached about $65 billion by the end of July.

But that rapid growth has also come with huge losses.

Anthropic recorded a net loss of nearly $42 billion in 2025, around five times its loss from the previous year. Much of its spending has gone towards computing power and developing its AI models.

The company raised $65 billion in May at a valuation of $965 billion.

Anthropic is also reportedly close to finalising a revolving credit facility worth more than $10 billion. The company is expected to pursue an initial public offering, with some reports suggesting it could challenge the record set by SpaceX. 

Broadcom shares rise after financing reports 

Broadcom shares rose a little more than 1% on Friday after the financing talks. The broader Philadelphia Semiconductor Index, however, fell about 1% that day.

Broadcom’s shares had already taken a hit earlier in the week after Marvell Technology announced a custom chip deal with Google.

Analysts see Broadcom’s role in AI financing as a sign of strong long-term demand for computing power. But they also warn that borrowing tens or even hundreds of billions of dollars carries major risks.

The size of these deals now looks more like financing for large energy and infrastructure projects than regular corporate loans. Broadcom, Apollo and Blackstone have not confirmed the final terms, which could still change.

Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.