AVGO Stock Soars as Private Equity Giants Weigh $35B Financing Deal
Broadcom's stock reached record highs on Friday after reports emerged that top private equity players are involved in talks to provide $35 billion in financing for the chipmaker.
Apollo Global Management Inc. and Blackstone Inc. are among the firms negotiating with Broadcom over the massive deal, which would be one of the largest private credit deals ever, according to Bloomberg.
The financing will help Broadcom fund the development of chips for AI tasks, a crucial aspect of its business as Big Tech firms plan to spend a combined $725 billion on AI infrastructure.
Broadcom has secured high-profile partnerships with Google and Meta Platforms through 2031, but its ambitious plan to develop bespoke artificial intelligence hardware with OpenAI hit a significant financing roadblock earlier this week.