Broadcom, Oracle and SpaceX explore multibillion‑dollar private debt to fund AI chip purchases
Broadcom, Oracle and SpaceX are in early discussions with private‑credit firms to raise large sums of debt for AI hardware. Broadcom is looking for more than $50 billion to back OpenAI’s custom chips, Oracle is evaluating a structure that would let a separate vehicle buy chips for a 1‑gigawatt data centre, and SpaceX is targeting roughly $40 billion to acquire Nvidia processors. The companies hope to close the financing before year‑end, with SpaceX’s package expected to be finalized in 2027.
Why it matters
The debt would provide the capital needed for each firm to expand AI compute capacity without draining cash reserves, according to the Wall Street Journal and other reports. Investors should watch the terms of these private‑credit arrangements, as they could affect leverage metrics and credit risk for the borrowers.
Key facts
- 1Broadcom is seeking more than $50 billion in private financing for OpenAI’s custom AI chip program. investinglive.com
- 2Oracle is negotiating a financing structure that would involve a separate entity purchasing chips for a 1‑gigawatt data centre. investinglive.com
- 3SpaceX is discussing a $40 billion debt package to buy Nvidia AI chips, split into about $10 billion of bank loans and $30 billion of investment‑grade bonds. 247wallst.com
- 4Broadcom, Oracle and SpaceX aim to finalize their respective financing deals before the end of 2026, with SpaceX’s closing expected in 2027. investinglive.com
- 5Apollo Global Management and Blackstone are among the private‑credit firms approached by Broadcom for the financing. investinglive.com
- 6Oracle’s discussions include Apollo and Goldman Sachs as potential lenders. investinglive.com
Open questions
- Exact size of Oracle’s chip financing amount is not disclosed.
- Final terms and interest rates of the proposed debt packages remain unspecified.
Summary written by AlphAI from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.