AVGO / ORCL: WSJ says Broadcom arranging $50B+ private credit for OpenAI chips, Oracle in talks with Apollo/GS
Posted: Thu Oct 08, 2026 10:32 am
After the FT's SpaceX ~$40B chip-debt story earlier this week, the WSJ reported late Wednesday that two more AI names are lining up large private financing.
- Broadcom: has spent recent weeks arranging more than $50B for the custom AI chip it's building with OpenAI. Apollo and Blackstone are among the lenders approached. Talks are early and the size could change, but it could close before year-end and pay for several gigawatts of OpenAI capacity. Background: the 10 GW OpenAI–Broadcom partnership announced a year ago, with deployments from 2H26 through 2029.
- Oracle: in talks with Apollo and Goldman Sachs to finance a large chip purchase. The structure would put investor money into a separate vehicle that buys the chips and leases them to Oracle, so Oracle doesn't borrow the full amount itself.
- After-hours reaction was small: AVGO ~-0.2% near $375.70, ORCL ~+0.3% near $143.96. AVGO dipped more than 1% in early pre-market. ORCL is ~-26% YTD.
Why it matters: for some of the biggest buyers, AI spending now matches or exceeds operating cash flow, so the funding is moving to private credit. With the 10y above 5.3% and the 30y at 24-year highs, the cost of money is now part of the AI trade.
How I'd trade it:
- This isn't a gap catalyst, more of a sentiment input. For AVGO, I'd watch whether the early dip holds Wednesday's low.
- ORCL could read either way: the off-balance-sheet structure as relief for the balance sheet, or as more hidden leverage. The first 30 minutes should tell you which view wins.
- APO, BX and KKR may get attention as the lenders.
Sources (public): [Yahoo Finance/Stocktwits summary of the WSJ report](https://finance.yahoo.com/technology/ai ... 58270.html), [Bloomberg Law on Broadcom's early talks](https://news.bloomberglaw.com/artificia ... enai-chips)
Does AI chip financing moving to private credit make you more cautious on the AI trade, or is it just plumbing? Anyone trading AVGO or ORCL off this?
- Broadcom: has spent recent weeks arranging more than $50B for the custom AI chip it's building with OpenAI. Apollo and Blackstone are among the lenders approached. Talks are early and the size could change, but it could close before year-end and pay for several gigawatts of OpenAI capacity. Background: the 10 GW OpenAI–Broadcom partnership announced a year ago, with deployments from 2H26 through 2029.
- Oracle: in talks with Apollo and Goldman Sachs to finance a large chip purchase. The structure would put investor money into a separate vehicle that buys the chips and leases them to Oracle, so Oracle doesn't borrow the full amount itself.
- After-hours reaction was small: AVGO ~-0.2% near $375.70, ORCL ~+0.3% near $143.96. AVGO dipped more than 1% in early pre-market. ORCL is ~-26% YTD.
Why it matters: for some of the biggest buyers, AI spending now matches or exceeds operating cash flow, so the funding is moving to private credit. With the 10y above 5.3% and the 30y at 24-year highs, the cost of money is now part of the AI trade.
How I'd trade it:
- This isn't a gap catalyst, more of a sentiment input. For AVGO, I'd watch whether the early dip holds Wednesday's low.
- ORCL could read either way: the off-balance-sheet structure as relief for the balance sheet, or as more hidden leverage. The first 30 minutes should tell you which view wins.
- APO, BX and KKR may get attention as the lenders.
Sources (public): [Yahoo Finance/Stocktwits summary of the WSJ report](https://finance.yahoo.com/technology/ai ... 58270.html), [Bloomberg Law on Broadcom's early talks](https://news.bloomberglaw.com/artificia ... enai-chips)
Does AI chip financing moving to private credit make you more cautious on the AI trade, or is it just plumbing? Anyone trading AVGO or ORCL off this?