Apollo Global Management and Blackstone are among a group of private credit investors in discussions to provide approximately $35bn in financing to Broadcom, in what could become one of the largest private credit transactions ever arranged, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that the proposed financing would support Broadcom’s continued expansion into artificial intelligence chip development and related infrastructure, as demand for AI compute capacity drives unprecedented capital requirements across the technology sector.
Terms of the transaction remain under negotiation and may change, the sources noted. All parties declined to comment.
If completed, the deal would underscore the growing role of private credit markets in funding large-scale AI infrastructure projects, an area traditionally dominated by public debt and syndicated loan markets.
Broadcom has significantly expanded its AI-related strategy in recent years, including long-term agreements to develop custom tensor processing units (TPUs) for major hyperscale customers such as Google. The company has also entered broader partnerships aimed at supplying networking and compute infrastructure for next-generation AI systems through the end of the decade.
The company has separately disclosed collaborations intended to support large-scale AI compute deployments, including arrangements involving Anthropic, as demand for high-performance computing accelerates across the industry.
Private capital participation in the AI build-out has increased materially over the past two years. In a comparable transaction, Meta Platforms previously secured a near-$30 billion financing package for data centre expansion backed by Blue Owl Capital and PIMCO, highlighting the expanding remit of private credit in investment-grade technology financing.
While Broadcom is considered an investment-grade issuer and therefore an unconventional borrower for private credit markets, large asset managers have increasingly targeted blue-chip corporates as competition for traditional leveraged lending opportunities intensifies.
Apollo has previously executed multi-billion-dollar financing transactions with investment-grade corporates, including EDF and Intel, and has argued that the expansion into higher-rated borrowers could significantly broaden the addressable private credit market over time.
The transaction also reflects the accelerating capital intensity of the AI sector. Broadcom CEO Hock Tan has previously highlighted expectations for AI-related chip revenues to exceed $100 billion annually in the coming years, as demand from hyperscalers continues to scale rapidly.
Major data centre operators are projected to significantly increase capital expenditure on AI infrastructure, with spending estimates reaching hundreds of billions of dollars annually across the sector.
Separately, Blackstone has been one of the most active investors in digital infrastructure, building a substantial global data centre portfolio across real estate, infrastructure and credit strategies as part of its broader AI thematic positioning.
