Broadcom is in talks with lenders to raise $70 billion to $80 billion in debt to finance a chip and computing infrastructure arrangement benefiting artificial intelligence companies, including Anthropic, as the AI industry races to secure the hardware needed to support its expansion.
The proposed financing could be even larger. A separate structure under discussion could take the total raise to as much as $100 billion, according to Bloomberg reporting cited by Reuters.
The deal would extend Broadcom's growing role in AI infrastructure and deepen its relationship with Anthropic, which is also laying the groundwork for its own custom semiconductor business.
Lenders are targeting a senior tranche of about $45 billion and a junior tranche of roughly $35 billion, according to CNBC, although the figures could change as discussions continue.
Blackstone and Apollo Global Management are among the investors discussing participation, CNBC reported. Blackstone declined to comment, while Broadcom and Apollo did not respond to Reuters' requests for comment.
The proposed financing builds on a partnership announced in June between Broadcom, Apollo and Blackstone.
The companies agreed to invest $35 billion to expand Anthropic's computing infrastructure using Broadcom's custom chips and networking technology.
The initial commitment was designed to add about one gigawatt of computing capacity, while the wider partnership aims to deliver more than 20 gigawatts of compute to leading AI laboratories by 2028.
The arrangement highlights the enormous infrastructure requirements of the AI industry, where companies are competing for processors, data centres and networking capacity.
As Broadcom works to expand its AI chip business, Anthropic is also strengthening its semiconductor capabilities.
The Claude maker has hired Amir Salek, a founder of Google's custom chip programme, to join its compute team. Salek led Google's Tensor Processing Unit business until 2022 and worked on the first seven generations of the company's chips.
Anthropic currently sources processors from several companies, including Nvidia, Google and Amazon.
Developing its own chips could give the AI company greater control over the hardware needed to train and run its models. Custom silicon could also help Anthropic address supply constraints and tailor chip designs to its specific computing requirements.
OpenAI is pursuing a similar strategy. The ChatGPT maker has unveiled a chip called Jalapeno, developed with Broadcom, and plans to begin using it later this year.
Broadcom itself designs custom chips for companies including Alphabet, Meta, Anthropic and OpenAI, helping large technology firms reduce their reliance on Nvidia, the dominant supplier of AI processors.
