Broadcom’s AI client financing platform sparks concerns, with its shares closing nearly 6% lower.
1 hours ago
According to BIT (Bit.com) market data, Broadcom closed nearly 6% lower on Friday. Market concerns have emerged over the financing model behind Broadcom’s AI infrastructure expansion. Bank of America analysts estimate that the financing platform Broadcom has set up for its AI chip clients could accumulate up to $370 billion in senior debt by mid-2029, with new issuances alone reaching around $150 billion in 2027. This estimate is based on a 20-gigawatt data center scale. The debt is held by the financing platform, not Broadcom directly, but Broadcom has provided guarantees for some clients’ lease payments, with the first transaction’s guarantee amounting to roughly $290 billion. This financing model launched in June this year, led by Apollo Global Management and Blackstone Group, providing $350 billion in funding for Broadcom’s AIXPV platform. The first tranche of funds will be used to support Anthropic in building over 1 gigawatt of computing capacity, with the platform targeting over 20 gigawatts of computing power by 2028. As AI infrastructure expands, Broadcom’s future guarantee scale has become a key focus for the market.
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