Why Is Broadcom (AVGO) Stock Moving? The $50 Billion OpenAI Chip Financing, Oct 7, 2026
Broadcom is arranging more than $50 billion so OpenAI can pay for its custom chips, the Wall Street Journal reported on October 7, 2026. The package is more than twice Broadcom's guided AI revenue for this quarter.
- The Wall Street Journal reported on the evening of October 7, 2026 that Broadcom is working to arrange more than $50 billion of financing for OpenAI's custom AI chips, with Apollo and Blackstone among the lenders in talks.
- The report came after the close; Broadcom had finished the regular session at $376.51, up 0.19%, a day after rising 3.67%.
- Broadcom used the same two lenders for a $35 billion package for Anthropic's chips in June 2026.
Broadcom (NASDAQ: AVGO) is arranging more than $50 billion of financing for the custom AI chips it is building with OpenAI, the Wall Street Journal reported on the evening of Wednesday, October 7, 2026. The report reached the MoveSurge news feed at 17:02:48 ET, after Broadcom had closed the regular session at $376.51, up 0.19%, and after-hours quotes showed the stock little changed. On October 6, the day of Marvell Technology's investor day, Broadcom had risen 3.67% to $375.81.
What the Wall Street Journal reported
| Detail | As reported on October 7 |
|---|---|
| Amount | More than $50 billion, and the size could still change |
| Lenders in talks | Apollo Global Management and Blackstone among them |
| What it pays for | Several gigawatts of OpenAI chip capacity |
| Timing | Talks at an early stage, with a close expected before the end of 2026 |
| Borrower, rate and maturity | Not reported |
Broadcom and OpenAI agreed in October 2025 to deploy 10 gigawatts of OpenAI-designed accelerators between the second half of 2026 and the end of 2029, and the reports describe the new package as covering several gigawatts of that total. Neither company commented. The same report said Oracle and SpaceX are arranging their own chip financings, with Apollo involved in both.
The Anthropic precedent
Broadcom has arranged money for a customer's chips before. In June 2026 it set up a financing platform with Apollo and Blackstone, and the first deal was a $35 billion package for more than one gigawatt of Anthropic's chips. In August Bloomberg reported that Broadcom was seeking up to $100 billion of debt for an AI chip deal, made up of $60 billion to $70 billion of senior debt partly guaranteed by Broadcom and about $30 billion of junior debt. The OpenAI talks bring back the same two lenders.
The financing next to Broadcom's AI revenue
On September 2 Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% from a year earlier, of which $16.7 billion came from AI semiconductors, up 221%. It guided fourth-quarter revenue to about $34.8 billion and AI semiconductor revenue to $21.7 billion. The OpenAI package alone is more than twice that quarterly AI guidance, and together with the Anthropic package the two financings come to more than $85 billion. Broadcom's AI sales to these customers therefore depend in part on lenders continuing to fund them, and any debt Broadcom guarantees would fall back on Broadcom if a customer could not pay.
Broadcom stock news since August
- October 7, 2026: the Wall Street Journal reported the OpenAI financing after the close; the stock had finished at $376.51, up 0.19%.
- October 6, 2026: Broadcom rose 3.67% to $375.81 on the day of Marvell's investor day.
- September 2, 2026: fiscal third-quarter results, with AI semiconductor revenue of $16.7 billion and fourth-quarter AI guidance of $21.7 billion.
- August 20, 2026: Bloomberg reported Broadcom was seeking up to $100 billion of debt for an AI chip deal.
- August 19, 2026: Broadcom fell 7.8% to $361.82 after Marvell disclosed a custom-silicon agreement with Google that came with a warrant tied to Google's purchases.
Related coverage: Marvell's investor day targets and SpaceX's $40 billion chip financing.
Why is Broadcom arranging financing for OpenAI?
According to the Wall Street Journal, Broadcom has spent recent weeks working to arrange more than $50 billion so OpenAI can pay for several gigawatts of the custom chips the two companies agreed to deploy in October 2025. Apollo and Blackstone are among the lenders in talks, and a close is expected before the end of 2026.
How did Broadcom stock react to the OpenAI financing report?
The report came after the close on October 7, 2026, when Broadcom had finished at $376.51, up 0.19%, and after-hours quotes were little changed. The stock had risen 3.67% the day before.
How much AI revenue does Broadcom expect this quarter?
Broadcom guided fiscal fourth-quarter AI semiconductor revenue to $21.7 billion, up from $16.7 billion in the third quarter, and total revenue to about $34.8 billion.
Sources
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Broadcom, Oracle and SpaceX pursue blockbuster debt deals amid AI buildout - WSJ
— Investing.com, citing The Wall Street Journal
Broadcom is working to arrange more than $50 billion for OpenAI's custom chip with Apollo and Blackstone among lenders in talks; Oracle and SpaceX are pursuing chip financings.
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WSJ: Broadcom seeks over $50 billion for OpenAI chips as Oracle, SpaceX chase AI debt deals
— investingLive
The talks are early, the size could change, the financing covers several gigawatts of OpenAI chip capacity and is expected to close before year-end.
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Broadcom, Oracle, SpaceX pursue blockbuster debt deals
— Investing.com via Yahoo Finance
Apollo Global Management and Blackstone are among the lenders in talks on the Broadcom financing.
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Broadcom (AVGO) stock $375.81, up 3.67% on Marvell investor day
— FinanceFeeds
Broadcom closed at $375.81, up 3.67%, on October 6, 2026.
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