Broadcom raises over 50 billion USD for OpenAI custom chip project, Apollo and Blackstone join in, Oracle also seeking money to buy chips

Broadcom raises over 50 billion USD for OpenAI custom chip project, Apollo and Blackstone join in, Oracle also seeking money to buy chips

AIbase

Broadcom is laying a remarkably large funding channel for the AI chip project it is jointly customizing with OpenAI. According to foreign media reports, the chip design giant is arranging more than 50 billion USD in financing for the custom artificial intelligence chip project it is developing in partnership with OpenAI, with Apollo Global Management and Blackstone Group among the lenders negotiating to participate in this massive loan.

The other end of this financing chain is just as busy. The report says Oracle is also in talks with Apollo and Goldman Sachs to raise funds for purchasing chips — on one side, Broadcom is seeking money to make chips, and on the other, Oracle is seeking money to buy chips, with the same group of financial institutions placing bets on both the supply and demand ends of AI compute.

When custom AI chips move from a partnership intent in the lab to a concrete project requiring tens of billions of dollars in debt to support, the binding between Broadcom and OpenAI has clearly gone beyond paper and straight into production capacity. And with capital giants like Apollo, Blackstone and Goldman Sachs appearing simultaneously on both the making and buying ends, one thing is stated plainly: in the next-generation AI arms race, the most expensive thing is not just the brains, but the pieces of silicon that feed those brains.

This article comes from the AIbase Daily

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