Broadcom lines up $50B to finance OpenAI's custom chips
The move
The Wall Street Journal reported Oct. 7 that Broadcom is trying to arrange more than $50 billion in financing for custom AI chips it is co-developing with OpenAI, with Apollo Global Management and Blackstone among the private lenders approached. The financing would support chips tied to OpenAI's plan to deploy 10 gigawatts of AI accelerators by the end of 2029. The same report said Oracle and SpaceX are separately in talks with lenders including Apollo, Blackstone and Goldman Sachs on their own AI chip and compute deals.
Why it matters
It shows AI's buildout increasingly running on borrowed money arranged by chipmakers and banks, not just the cash reserves of the AI labs themselves.
The bear case
Talks are early, no deal is expected before year-end, and none of the companies involved has confirmed the size or structure of the financing.
What to watch
Whether Broadcom's financing, and the parallel Oracle and SpaceX deals, are finalized before year-end.