Broadcom's $70B AI Financing Deal Sparks Concerns Over $370B Hidden Debt Exposure
Broadcom is negotiating a $70-80 billion debt deal via special purpose vehicles to finance AI chips for clients like Anthropic. While the debt sits off Broadcom's balance sheet, the company guarantees repayment, creating potential exposure of $370 billion by 2029. Critics warn this correlated risk across AI chipmakers could trigger a systemic crisis if demand falters, despite Bank of America calling the risk 'manageable.'
