Broadcom eyes $30 billion debt to fund OpenAI chip buys

The financing playbook itself is familiar. Manufacturers like General Motors and General Electric have long helped customers buy their products through financing and investing in infrastructure. What stands out now is the scale, and the uncertainty around the core product. Nvidia recently partnered with six finance firms to mobilize over $500 billion in third-party capital to finance customers' AI infrastructure, and it holds direct stakes in AI companies valued at almost $100 billion. AMD has offered OpenAI and Meta warrants for up to 320 million shares at a penny each, giving those customers a stake in its success.

As Nvidia, Broadcom, and AMD compete through financing and equity incentives, the question of competition comes into view: are customers paying the right price, and can they shop around? Much of this financing rests on the labs' revenue growth, which is why the numbers matter. The FT reported yesterday that OpenAI shared updated financials showing annualized revenue approaching $50 billion as of the end of September—about $20 billion less than what was circulated to investors last month. OpenAI and Anthropic also calculate revenue differently, and stripping out cloud-partner revenue leaves Anthropic's $60 billion annualized figure through the end of July probably about a third less.

Going public may bring higher demands for clarity on what is really fueling the AI boom. There was a time when GE Capital was reported as a single line item, despite making up almost half of GE's earnings; the financial crisis and demands for transparency forced more disclosure, highlighting vulnerabilities investors did not like.