Broadcom Helps AI Giants Anthropic and OpenAI Get Back on Track

Broadcom CEO Hock Tan has likened the company's financing of AI infrastructure for Anthropic and OpenAI to helping two geniuses stranded in Mongolia get to college.

Tan made this comment on Broadcom's third-quarter earnings call, where he noted that only two of its six major AI chip customers need financing. Those customers are Anthropic and OpenAI, which require outside capital to keep pace with the costs of their growth.

The support for these companies flows through Broadcom's XPV platform, a financing vehicle launched in June with Apollo Global Management and Blackstone Inc. The company has already closed a $35 billion first tranche tied to Anthropic's initial 1-gigawatt deployment.

Tan stated that each gigawatt of compute deployed by these companies could generate roughly $30 billion in annual revenue, calling it 'a hell of a business model' and the reason Broadcom is willing to help finance their buildout. He also predicted that Anthropic will overtake Alphabet's Google as Broadcom's largest customer for custom AI chips in 2027, sustaining this lead through 2028.