Broadcom seeks $35B AI financing

Broadcom is in advanced talks to secure about $35 billion in private-credit financing from Apollo Global Management and Blackstone to support its artificial-intelligence chip business, according to reports published in May. Bloomberg reported on May 8 that the package would help fund Broadcom's AI buildout and could become one of the largest private-credit transactions on record. The discussions come as Broadcom's custom-silicon business expands with large cloud and AI customers, and as the company has told investors its AI semiconductor revenue is rising rapidly. ### Why is Broadcom looking at private credit instead of ordinary corporate funding? Bloomberg reported on May 8 that Apollo and Blackstone were among lenders discussing a roughly $35 billion financing for Broadcom, with terms still under negotiation. Simply Wall St, citing that report, said the financing was aimed at AI-chip development, particularly custom silicon for large technology clients. (bloomberg.com) Private credit has become a larger source of funding for capital-heavy projects that do not fit neatly into public bond issuance or bank lending. Bloomberg said the Broadcom package would be another sign that companies are drawing on private lenders to finance the AI buildout. That characterization came from Bloomberg's report; Broadcom, Apollo and Blackstone had not publicly detailed terms in the material reviewed. (bloomberg.com) ### What exactly would the money support inside Broadcom's AI business? Broadcom said in its first-quarter fiscal 2026 results that AI revenue reached $8.4 billion, up 106% from a year earlier, driven by demand for custom AI accelerators and AI networking. Chief Executive Hock Tan said the company expected AI semiconductor revenue to rise to $10.7 billion in the second quarter. (bloomberg.com) CNBC reported in April that Broadcom had agreed to produce future versions of Google's AI chips and had expanded a separate arrangement tied to Anthropic's compute capacity. Anthropic said in its own April announcement that it was deepening work with Google Cloud and Broadcom while continuing to train and run Claude on multiple hardware platforms. (prnewswire.com) ### Which customers are driving the push for custom silicon? Google and Anthropic are among the named participants in Broadcom's recent AI expansion. CNBC reported on April 6 that Broadcom had agreed to produce future versions of Google's AI chips, while Anthropic said its expanded arrangement built on its relationship with Broadcom and increased TPU capacity. (cnbc.com) S&P Global Market Intelligence said hyperscalers including Google, Meta and Anthropic were deploying Broadcom custom accelerators, or XPUs. That customer mix helps explain why Broadcom's AI business now spans both custom compute chips and the networking silicon used in large AI clusters. (cnbc.com) ### How large would this deal be relative to Broadcom's current business? The proposed $35 billion package is more than four times Broadcom's reported first-quarter AI revenue of $8.4 billion and exceeds the company's $10.7 billion second-quarter AI semiconductor revenue outlook. Bloomberg said the financing would rank among the largest private-credit deals on record if completed. (spglobal.com) Broadcom's 2025 annual report shows the company already carries substantial debt from prior acquisitions and operations, making the structure and pricing of any new package important to investors. Simply Wall St said a completed facility would add to Broadcom's existing debt load, though final terms had not been disclosed. ### What should investors and customers watch next? (prnewswire.com) Broadcom's investor relations site says the company provides regular financial updates through quarterly results and SEC filings. Any completed financing, changes to borrowing, or new capacity commitments tied to AI customers would typically appear in those disclosures or in a separate announcement. The next concrete milestone is Broadcom's fiscal second-quarter earnings report, where investors will be looking for any reference to Apollo, Blackstone, private-credit terms, or additional custom-chip capacity commitments with named customers. (sec.gov) Broadcom's recent earnings releases have been the vehicle for disclosing AI revenue growth and forward guidance. (prnewswire.com) (investors.broadcom.com)