Apollo and Blackstone are in discussions with Broadcom regarding a potential $35 billion financing deal that aims to support the chipmaker’s development of chips specifically for artificial intelligence tasks. This financing could represent one of the largest private credit deals to date, highlighting the increasing collaboration among private equity firms to meet the substantial capital requirements associated with AI projects. As companies mobilize diverse funding sources, private credit is becoming a critical tool for facilitating the growth of AI infrastructure, including the expansion of AI data centers.
Broadcom Inc.: Broadcom Inc. designs semiconductors and infrastructure software critical for AI infrastructure, data centers, networking, and connectivity solutions like custom XPUs and AI networking chips. It recently advanced production AI capabilities through VMware Cloud Foundation updates. Broadcom is negotiating with private credit lenders including Apollo and Blackstone for financing to support its AI chip development.
Blackstone Inc.: Blackstone Inc. is the world’s largest alternative asset manager serving institutional and individual investors with strategies including private credit to build enduring businesses. Recent commentary addresses myths versus realities in private credit markets. Blackstone is participating in discussions for a major private credit deal to fund Broadcom’s AI initiatives.
Apollo Global Management Inc.: Apollo Global Management Inc. is an alternative asset manager and capital provider specializing in credit, equity, and real assets through flexible financing and private market investments. It focuses on private investment grade credit and fixed income strategies to support companies across sectors. In this development, Apollo is among private credit lenders in talks to finance Broadcom’s AI chip development.
PE Firm Collaboration: Private equity rivals such as Apollo and Blackstone are partnering to address the massive capital demands of AI projects.
AI Data Center Funding: Hyperscalers are increasingly using private credit to finance the expansion of AI data centers.
Private Credit Expansion: Private credit providers are broadening financing for AI infrastructure amid growing market pressures.