Premium"The Crowding Out Effect Is Immense": Broadcom, Oracle Join SpaceX In AI Chip-Debt SPV Stampede
A day after SpaceX went looking for $40 billion in chip-collateralized SPV debt, sending its CDS into geostationary orbit in the process, the rest of the AI complex has gotten in line.
According to the Wall Street Journal, Broadcom has spent the past few weeks working to arrange more than $50 billion in financing for OpenAI's custom AI chip, with Apollo and Blackstone among the lenders it has approached. Separately, Oracle - which has emerged as the weakest link in the entire credit-fueled AI bubble and will likely be the first domino to fall - is in talks with Apollo and Goldman Sachs to fund a big chip purchase through an off-balance sheet vehicle. Add the SpaceX deal, which we covered yesterday, and Broadcom's $60 billion Anthropic financing, which started syndicating last week, and the AI ecosystem has lined up roughly $150 billion in chip debt in about a week, without counting Oracle, which hasn't even put a number on its deal yet.