Apollo and Blackstone Weigh $35 Billion Private Credit for Broadcom AI Chips
Apollo and Blackstone are among private credit lenders in talks with chipmaker Broadcom over roughly $35 billion in financing to fund AI chip development, Bloomberg reported. The discussions come after earlier reports that the first phase of Broadcom's chip project with OpenAI had hit financing trouble.
The Information said the OpenAI-Broadcom chip deal could cost $180 billion in production alone, with the first phase already stuck on financing. Earlier reporting said Broadcom wanted Microsoft to commit to buying about 40% of the initial batch before it would finance that phase, which was expected to cost about $18 billion, complicating OpenAI's effort to reduce its dependence on Nvidia.
From the sources (25 posts)
@financialjuiceOpenAI's AI chip agreement with Broadcom encounters $18 billion funding hurdle - The Information
@firstsquawkOpenAI–Broadcom AI Chip Partnership Hits $18 Billion Funding Snag: The Information Reports
@wallstengineOpenAI’s Broadcom $AVGO custom AI chip deal has hit an $18B financing snag. Broadcom reportedly wants Microsoft to buy ~40% of first-phase chips, but Microsoft hasn’t committed, a key risk for OpenAI’s plan to cut Nvidia reliance. Source:
@negligible_cap*OPENAI, BROADCOM AI CHIP DEAL HITS FINANCING SNAG: INFORMATION *OPENAI WARNS OF $18B FINANCING SNAG: INFORMATION OpenAI is running into financing issues for their chip deal with $AVGO, which is selling off. Who coulda saw that coming. Cer
@amirnew: Microsoft holds sway over OpenAI's development of a custom AI server chip for inference. $18 billion in financing for the chip hinges on Microsoft.
@amir👀👀👀Because OpenAI and Microsoft “have not disclosed the full nuances of our relationship, Broadcom does not fully appreciate that risk and believes it is within [OpenAI’s] control to require Microsoft to make the purchase,” the memo said.
@jessicalessinRT @anissagardizy8: NEW: When OpenAI and Broadcom announced they would make 10 GW of custom AI chips together, they positioned it as a done…
@stocksavvyshayOpenAI’s reported $AVGO custom AI chip deal has allegedly hit a $18B financing snag tied to $MSFT not committing to ~40% of the first wave chips. Hard to buy when AI compute demand is still eating every credible chip supply source alive. h
@edzitronAnother legendary @anissagardizy8 report
@theinformationRT @anissagardizy8: NEW: When OpenAI and Broadcom announced they would make 10 GW of custom AI chips together, they positioned it as a done…
@theinformationRT @amir: new: Microsoft holds sway over OpenAI's development of a custom AI server chip for inference. $18 billion in financing for the…
@zephyr_z9Satya is twisting the knife
@theinformationExclusive: OpenAI’s $18 billion chip plan with Broadcom has hit a financing snag. Microsoft’s willingness to buy the chips could decide the deal’s fate.
@shanumathew93Always be skeptical of the “done deals” across the entire stack. We are in a PR-driven market. Do the work on what’s real or not and holds up if conditions on the ground change.
@yahoofinance$AVGO sinks on report of financing negotiations in OpenAI deal 📉
@edzitronBeen saying this was bullshit for months!
@theinformationExclusive: OpenAI wants custom chips to cut its dependence on Nvidia. But Broadcom wants Microsoft to buy about 40% of the first batch before financing the project. Full story:
@dnystedtRT @wallstengine: OpenAI’s Broadcom $AVGO custom AI chip deal has hit an $18B financing snag. Broadcom reportedly wants Microsoft to buy ~4…
@aaronwei3nNot a great signal. If $MSFT doesn't even trust its own custom ASIC, there is no way they are going to rely on OpenAI's. Custom silicon is always harder than it looks on paper.
@zerohedge*APOLLO, BLACKSTONE WEIGH $35 BILLION FINANCING FOR BROADCOM
@wallstengineAPOLLO, BLACKSTONE WEIGH $35 BILLION FINANCING FOR $AVGO BROADCOM: BBG
@financialjuiceApollo and Blackstone weigh $35 bln financing for Broadcom. $AVGO
@edzitronFeeding pension and insurance funds into Broadcom to finance OpenAI chips that never get put in a data center…simple as
@negligible_cap$BX and $APO in talks with $AVGO to provide $35B in funding to help their AI buildout. Just yesterday, The Information reported that $AVGO and OpenAI were running into an $18B financing snag. Looks like private credit to the rescue? "The
@businessApollo and Blackstone are among private credit lenders involved in talks with chipmaker Broadcom over a roughly $35 billion financing