Broadcom Reportedly in Talks for Over $50 Billion Financing as Oracle, SpaceX Seek Funds to Buy AI Chips

TradingKey - On October 7 ET, according to a Wall Street Journal report citing people familiar with the matter, Broadcom (AVGO) is arranging over $50 billion in financing for a custom AI chip project in partnership with OpenAI, while Oracle (ORCL) is also in talks for large-scale chip procurement financing.

Additionally, according to a Financial Times report on October 6, SpaceX (SPCX) is seeking about $40 billion in financing to purchase Nvidia (NVDA) chips. None of the above financings have been completed, and the final sizes and specific terms remain to be determined.

Broadcom in Talks for Financing to Advance OpenAI Custom Chip Plan

Broadcom has reportedly approached Apollo Global Management (APO) and Blackstone (BX), among other institutions, to arrange financing for a custom AI chip project in partnership with OpenAI. Negotiations remain in the early stages, and the final financing size may be adjusted.

Broadcom and OpenAI announced a partnership on October 13, 2025, with a deployment target of 10 gigawatts, covering custom AI accelerators and supporting networking systems.

OpenAI is responsible for designing the accelerators and systems, while Broadcom is participating in development and deployment and providing connectivity technologies such as Ethernet. According to the previously announced plan, deployment is scheduled to begin in the second half of 2026 and be completed by the end of 2029, with locations including OpenAI facilities and partner data centers.

Oracle Explores Having Independent Company Buy and Rent Out Chips

According to a Wall Street Journal report citing people familiar with the matter, Oracle is in discussions with Apollo Global Management and Goldman Sachs (GS) regarding chip procurement financing, hoping to complete the arrangement within 2026. The report did not specify the amount of the proposed financing.

The proposal under discussion involves investors providing capital to an independent company, which would then purchase chips and lease them to Oracle to alleviate financial pressure between upfront hardware procurement and the subsequent recovery of cloud revenue. The plan remains under negotiation, and the report did not disclose specific financing and leasing terms.

SpaceX Plans $40 Billion Funding as Debt Risks Draw Attention

According to a report by the Financial Times, SpaceX is seeking about $40 billion in financing to purchase Nvidia chips, with the proposed plan including approximately $10 billion in bank loans and $30 billion in investment-grade debt. Apollo is expected to lead the financing arrangement, and Pimco is also in talks to participate. Citing people familiar with the matter, the report noted that the deal is expected to close in 2027.

According to Reuters, Elon Musk stated in September 2026 that the number of Nvidia chips used in xAI's Colossus 2 data center could more than double by December.

The new borrowing plan has also drawn attention in the debt market. The Financial Times reported that on October 7, SpaceX's five-year credit default swap spread rose to 194 basis points, up from around 110 basis points when trading began in June, signaling a rising cost to buy default protection on its debt.

[Source: Financial Times, Refinitiv]