Broadcom Inc. is reportedly seeking to borrow up to $100 billion as part of a new artificial intelligence chip financing deal.\u00a0<\/p>\n
Bloomberg today cited<\/a> sources as saying that the debt is intended to support the growth efforts of Anthropic PBC and unnamed \u201cother companies.\u201d Those companies may include OpenAI Group PBC. Earlier this year, the ChatGPT developer partnered with Broadcom to develop custom processors.<\/p>\n The chipmaker\u2019s debt financing deal could reportedly include between $60 billion and $70 billion worth of senior notes. Those are loans that the borrower must pay back before its other obligations in the event of a bankruptcy. It\u2019s believed that Broadcom may guarantee a portion of the debt. Additionally, the company could reportedly add about $30 billion in junior notes, debt instruments that are only repaid after the borrower offloads all its senior debt.<\/p>\n It\u2019s unclear what AI initiatives Broadcom plans to support with its chip financing deal. However, today\u2019s report did specify that Blackstone and Apollo Global Management are among the investors from which the chipmaker hopes to raise the funds.<\/p>\n In June, the three companies launched<\/a> an investment vehicle called the AI XPV Platform. It has provided Anthropic with $35 billion in financing to support data center construction initiatives. Those projects are expected to bring more than 1 gigawatts of computing capacity online this year. According to Broadcom, the AI XPV Platform\u2019s longer-term goal is to facilitate more than 20 gigawatts\u2019 worth of data projects through 2028.<\/p>\n Notably, the infrastructure that the fund will finance will use Broadcom silicon. The company is a major supplier of chips for data center switches. It\u2019s also the world\u2019s top maker of host bus adapters, which are used to connect servers with storage equipment.<\/p>\n AI accelerators have emerged as another major source of revenue for Broadcom. The chipmaker helped Google LLC develop its TPU line of machine learning processors. In April, the companies<\/a> extended their engineering partnership to 2031. The same month, Google and Broadcom announced<\/a> plans to provide Anthropic with several gigawatts of TPU computing capacity.\u00a0<\/p>\n In June, Broadcom and OpenAI debuted<\/a> a jointly designed inference accelerator called Jalape\u00f1o. The ChatGPT developer expects the chip to provide better performance than current graphics processing units. According to OpenAI, the accelerator\u2019s speed is partly the fruit of optimizations designed to reduce data movement.<\/p>\n Broadcom expects to generate more than $100 billion in revenue from AI chips next year. Anthropic will reportedly<\/a> account for more than 40% of that sum.<\/p>\n Photo: Broadcom<\/a><\/p>\n Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE\u2019s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.<\/p>\n 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE<\/a>, theCUBE Network<\/a>, theCUBE Research<\/a>, CUBE365<\/a>, theCUBE AI<\/a> and theCUBE SuperStudios \u2014 with flagship locations in Silicon Valley and the New York Stock Exchange \u2014 SiliconANGLE Media operates at the intersection of media, technology and AI.<\/p>\n Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.<\/p>\n
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