[News] AI Chip Spending Fuels Debt Financing Wave; Broadcom Reportedly Eyes Tens of Billions to Fund OpenAI

AI companies and their infrastructure partners are increasingly turning to debt financing to fund massive chip purchases as they expand AI capacity. According to Bloomberg, Broadcom has held preliminary discussions on arranging financing to help OpenAI purchase the custom AI chips the two companies are developing together. No formal process has begun and the plans could still change.

Estimates of the potential financing size vary, as talks remain at an early stage and the final amount could change. Bloomberg reports that discussions point to around $30 billion in debt for the next phase of the project, while The Wall Street Journal says Broadcom has been working to arrange more than $50 billion in financing for OpenAI’s custom AI chips.

The financing push extends across the AI industry. Oracle is also discussing chip-purchase…