Broadcom was reported to be negotiating more than $60 billion in fresh debt on August 20, with the deal potentially reaching as much as $100 billion once all components were counted, according to sources familiar with the matter. The financing arrangement benefits Anthropic and other customers, underscoring Broadcom’s central role in funding artificial intelligence infrastructure development.
Broadcom’s custom AI chips have become the preferred option for hyperscalers managing large, predictable workloads. The company reported AI semiconductor revenue of $10.8 billion in the second quarter, representing an annualized run rate near $43 billion. Management indicated visibility to more than $100 billion in AI chip revenue alone by 2027, a figure that would substantially exceed the company’s $64 billion in total revenue for 2025. Broadcom’s pipeline continued to expand, with an April agreement with Alphabet covering five years of future tensor processing unit generations and related networking equipment.
The latest financing traces back to a June agreement involving Apollo Global Management and Blackstone to fund a $35 billion expansion of Anthropic’s computing capacity, part of a broader partnership targeting more than 20 gigawatts of AI compute by 2028. The structure included Broadcom guaranteeing part of a senior secured tranche potentially running $60 billion to $70 billion, along with a roughly $30 billion junior tranche, all channeled through a special purpose vehicle.
Broadcom’s stock faced pressure on August 19, falling as much as 5.9% after Marvell Technology disclosed a new custom chip agreement with Alphabet covering AI inference accelerators and storage controllers. Broadcom traded at 65 times trailing earnings, though forward valuation metrics appeared more favorable at 19.38 times expected earnings. Hedge fund ownership declined from 202 funds to 173 between recent quarters, suggesting some institutional pullback, while short interest remained minimal at 1.31% of the float.
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