Broadcom partners with Apollo Global Management and Blackstone to finance custom AI chips for LLM developers including Anthropic and OpenAI

Broadcom CEO Hock Tan announced the company is partnering with Apollo Global Management and Blackstone to create an AI XPU platform that will fund custom AI chips for LLM (language model) developers. Apollo is launching the platform's first $35 billion tranche, with the initiative expected to deploy more than 20 gigawatts of compute capacity by 2028.

The financing vehicle is designed to help LLM companies secure the massive computing capacity needed to train and deploy advanced AI models, addressing the enormous infrastructure costs these companies face. Broadcom CEO Tan stated the effort aims to provide AI customers access to chips that offer the lowest power and lowest cost.

Broadcom's customers are placing orders years in advance, requiring coordination of chip production, memory supply, power availability, and data center infrastructure. Tan noted that demand visibility now extends through 2028, compared with 2027 just three months ago.