Broadcom Pursues $60 Billion AI Chip Debt as Guarantee Exposure Could Hit $370 Billion
Updated
Updated · 24/7 Wall St. · Aug 21
Broadcom Pursues $60 Billion AI Chip Debt as Guarantee Exposure Could Hit $370 Billion
3 articles · Updated · 24/7 Wall St. · Aug 21
Summary
$60 billion to $100 billion in planned SPV borrowing would let Broadcom fund AI chip deployments off balance sheet, with the company guaranteeing part of the debt instead of issuing it directly.
Bank of America estimates those guarantees could swell to $370 billion by 2029, a risk that stays dormant if AI customers keep paying but could crystallize if leasing demand weakens.
Broadcom already carries about $64.9 billion of debt and $19.63 billion of cash after VMware, making the contingent exposure more sensitive to any industrywide slowdown.
Hock Tan has framed the structure as an AI platform backed by Apollo, Blackstone and other investors, but Broadcom's filings still list the guarantee-related obligations under indebtedness risk factors.
Markets are starting to test that tail risk: Broadcom shares fell 6.24% for the week, and widening spreads on new SPV paper are emerging as a key signal.