StocksMediumUpdated•Originally published 8 October 2026•Updated 8 October 2026•
1 min read
Broadcom Plans $50 Billion Financing for OpenAI Chip Purchases
Key Facts
1Broadcom's AI semiconductor revenue reached $16.7 billion.
2Management expects AI revenue to reach $115 billion in FY2027 and $230 billion by FY2028.
3The company has $126.8 billion in purchase commitments concentrated in FY2027 and FY2028 to support supply ramp.
Broadcom is planning $50 billion in financing to assist OpenAI with chip purchases. The Wall Street Journal reported that the funding initiative is designed to help OpenAI secure the advanced hardware necessary for its artificial intelligence development.
The financing plan follows Broadcom's guidance targeting $230 billion in AI-related revenue by 2028, up from a recent $16.7 billion. Regarding market performance, AVGO closed at $376.51 on October 7, 2026, with the stock trading between a low of $369.12 and a high of $376.97 during that session.