Newsquawk Logo

OpenAI’s AI chip deal with Broadcom (AVGO) hits USD 18bln financing snag, via The Information

The financing snag in OpenAI’s AI chip deal with Broadcom highlights the critical dependency on Microsoft's commitment to purchase a significant portion of the chips.

Newsquawk StaffPublished On the live feed at — 3 more headlines followed before this page went public
Newsquawk headlinesUTC

Apple (AAPL) airpods with cameras have reportedly hit an advanced testing stage

Shipping traffic through Strait of Hormuz reportedly drops to near-zero, via CNN

OpenAI’s AI chip deal with Broadcom (AVGO) hits USD 18bln financing snag, via The Information

NHTSA says Tesla's (TSLA) Model Y is the first vehicle to pass NHTSA's new "Advanced Driver Assistance" tests

IEA Chief Birol says IEA has only released c. 20% of its total oil stockpile so far and is ready to act again

Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.

Try the platform free
Free. No signup, no card.
  • Negotiations have run into a potential problem. Broadcom has said it would finance the first phase only if Microsoft agrees to buy roughly 40% of the chips, an OpenAI executive told colleagues in a memo last month. ""
  • "Microsoft would install the chips in its data centers and then rent them back to OpenAI."
  • "A purchase commitment from Microsoft, one of the world’s most creditworthy companies with decades of data center experience, would give Broadcom confidence it would get its money back, said a person involved in the talks."
  • "But Microsoft could choose not to buy OpenAI’s chips, which would change the financing terms for the project, the memo said."
Context

This situation introduces uncertainty to the financing structure and could derail the project if Microsoft decides against the purchase, impacting not only the involved companies but also the broader semiconductor and AI markets.

External

Related headlines

The whole workspace, free to try.

Try it free
Newsquawk Logo

© 2026 Newsquawk. All rights reserved.