Broadcom shares (NASDAQ: AVGO) slipped close to 2% in premarket trading Thursday after a report revealed that the technology company is seeking to raise around $50 billion in financing for a joint project with OpenAI.
The decline came after Broadcom shares edged 0.19% higher Wednesday against a broader market sell-off, extending the stock’s winning streak to four sessions. The stock had climbed 3.35%, 2.08% and 3.67% in the three sessions before Wednesday.
The reported financing effort is giving investors another factor to weigh as markets assess whether financial conditions remain supportive of the rapid expansion of artificial intelligence infrastructure.
Broadcom big move in credit markets
The Wall Street Journal reported Wednesday that Broadcom has been in talks with major private credit firms to secure funding for an OpenAI custom artificial intelligence chip program being developed jointly by the companies.
The report identified Apollo and Blackstone among the credit firms Broadcom has engaged with. Discussions remain at an early stage, and the size of the financing could change, according to the report. The deal is expected to be finalized before the end of this year.
The reported package would be similar to Broadcom’s earlier $60 billion debt facility that it reportedly arranged for Anthropic PBC. Broadcom had also pursued $35 billion in financing to help Anthropic expand its computing capacity.
The latest financing discussions come as Broadcom and OpenAI move ahead with plans to develop large-scale custom AI infrastructure.
OpenAI chip project
Broadcom and OpenAI have combined to deploy 10 gigawatts of custom AI accelerators. The accelerators and related systems are being developed and deployed by OpenAI in partnership with Broadcom.
Broadcom also sells Ethernet switches used to connect the chips and runs VMware infrastructure software.
The companies have said they plan to begin deploying the systems in the second half of 2026 and continue through the end of 2029.
The scale of the project highlights the significant amount of capital required to build out AI computing infrastructure, with the reported financing potentially providing additional funding capacity for the program.
Broadcom has frustrated its buyers
Despite repeated beats, Broadcom’s stock has not given results its holders have been hoping for. Despite beating EPS estimates in all 8 of its latest reported periods, shares have moved an average of -1.25% the day after, as per Yahoo Finance.
Despite its four-day rally leading up to Thursday, the stock remains around 25% below its peak of $495 that it achieved in June this year.
Broadcom’s revenue increased 49% over the 12 months through the third quarter of fiscal 2026, while analysts are forecasting 66% revenue growth for fiscal 2026.
Broadcom said engagement remains strong for the next two generations of its XPU program following the v8i ramp in 2027.
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