DEVOURED
Oracle, Broadcom, and SpaceX Seek Blockbuster Debt Deals to Pay for AI Chips
Broadcom, Oracle, and SpaceX are seeking massive debt financing to procure high-end AI chips amid the industry's supply-constrained expansion.
What: Broadcom is arranging $50 billion for OpenAI-related hardware, while SpaceX is seeking $40 billion for Nvidia chips and Oracle is negotiating financing for its own chip infrastructure.
Why it matters: The extreme scale of this debt financing underscores that AI infrastructure development is now a capital-expenditure race requiring massive debt loads, shifting reliance toward private equity lenders like Blackstone and Apollo.
Original article
Broadcom has been working to arrange more than $50 billion in financing for OpenAI's custom AI chip. Apollo and Blackstone are among the lenders Broadcom has talked to about participating in the deal. Oracle is separately in talks with Apollo and Goldman Sachs to arrange money for a big purchase of chips. SpaceX has talked to lenders in recent days about a $40 billion chip financing for Nvidia chips.
Explore all 59 articles in today's digest
Fresh dev news, AI-digested daily. Never miss a trend at devoured.fyi