Broadcom, Oracle and SpaceX Pursue Tens of Billions in Debt to Fund AI Buildout

Three of the largest players in technology and aerospace are simultaneously negotiating massive private debt deals to accelerate AI infrastructure, signaling that public bond markets and internal cash flows are struggling to keep pace with the scale of global data-center expansion. Broadcom is assembling a financing package exceeding $50 billion, working in early-stage talks with Apollo Global Management and Blackstone, to fund its custom AI chip program known internally as Nexus, which targets multiple gigawatts of compute capacity through 2029 and is aimed in part at serving OpenAI. Oracle is separately negotiating with Apollo and Goldman Sachs on a financing framework to procure hardware for a 1-gigawatt data center facility. SpaceX, meanwhile, is seeking $40 billion to purchase Nvidia chips, structured as roughly $10 billion in bank loans and $30 billion in investment-grade debt, with PIMCO among the investors in talks.

The simultaneous pursuit of deals of this scale marks a shift in how the AI race is being won: capital access is becoming as decisive as chip design or model quality. Analysts note that the sheer volume of financing, with each deal potentially ranking among the largest private debt transactions ever, reflects both the enormous appetite for compute and the limits of what companies can fund from their own balance sheets.

Elsewhere in AI financing, Reflection AI, a startup founded by DeepMind alumni and backed by Nvidia, is reportedly valued at $25 billion and has committed to spending more than $7 billion on compute before shipping its first model. The bet underscores how expensive it has become to compete in frontier AI development, particularly as American startups contend with the widespread availability of Chinese open-source models. McKinsey senior partner Eric Kutcher has argued that AI-driven productivity gains could ultimately help reduce the US debt burden by lifting GDP, though he flagged energy constraints as a meaningful threat to continued data-center growth.