Broadcom Seeks Up to $80 Billion in Debt to Fund AI Chip Buildout

Broadcom is looking to raise as much as $80 billion in debt to help fund an AI chip deal, according to a report from Investing.com. The size of the raise underscores how large custom chip contracts with hyperscale cloud companies have become, and how much capital chipmakers now need to fulfill them. The move comes as Wall Street separately floats Broadcom as a candidate to become a $1 trillion chip company, with Nvidia CEO Jensen Huang reportedly pointing to Google's own AI chip progress as evidence that custom silicon players like Broadcom can capture a bigger share of AI spending. Hyperscalers are expected to spend $750 billion on AI infrastructure this year, spending that flows partly into Broadcom's custom chip and networking business. What remains unresolved is the exact structure and pricing of the debt, and which customer or customers the financing is tied to. The scale of the raise also raises questions about how much leverage chipmakers are willing to take on to chase AI demand that has not yet been tested by a full economic cycle.