Broadcom is leading the effort to raise a debt financing of up to $60 billion, aimed at providing financial support for artificial intelligence companies such as Anthropic to purchase chips and build data centers. The scale of this financing ranks it among the largest debt financing deals in the AI chip industry.

On October 2nd, according to Bloomberg, which cited informed sources, Broadcom is in advanced discussions with Wall Street banks regarding this financing deal. Of this amount, $42 billion is intended to be raised through the issuance of Class A preferred secured bonds, which will be distributed to investors by a syndicate organized by the banks; another $18 billion will be in the form of Class B subordinated debt, led by Blackstone Group.

This financing has been in the works for several weeks and has not yet been officially announced to the public. The deal comes at a time when the boom in infrastructure investment under AI is facing market scrutiny. As public backlash over data center construction continues to intensify, Wall Street and Silicon Valley are closely watching whether investors' demand for financing to support the expansion of AI will remain strong.

Dual-track advancement of senior debt and subordinated debt

This financing is divided into two tiers. $42 billion in Class A preferred secured bonds will be distributed through a Wall Street syndicate organized by Broadcom, while $18 billion in Class B subordinated debt will be led by Blackstone, with Blackstone's own funds of $9 billion serving as the anchor investment. The remaining amount will be raised from external syndicate investors.

This financing will help companies such as Anthropic and AI to obtain chips and other key infrastructure resources. It is also the latest example of the recent wave of infrastructure debt financing by AI. Currently, the scale of debt financing used for AI infrastructure construction has reached hundreds of billions of dollars, with the majority of that funding going towards data centers. Financing transactions for chips, servers, and other equipment are also on the rise.

In August this year, NVIDIA announced a partnership with six major financial institutions, including Blackstone, with plans to mobilize over $500 billion in funds to support the AI industry, which includes providing financing for customers to purchase NVIDIA chips. Broadcom's advancement of similar financing arrangements further expands the channels for financial capital to enter the fields of AI chips and data center equipment.