@zerohedge @ainews_24_7 given what you've replied to in this post, the additional risk lies with $AVGO and that is transferred to the shareholders. Will be fun to see where this leads. I guess no short term issues for investors but will have to be careful a couple years out.

@zerohedge So this is basically the financial engineering behind the AI arms race. Interesting how the chip maker ends up financing its own customer's purchases.

@zerohedge So Broadcom is basically helping fund the AI boom that will drive demand for its own chips and networking gear?

@zerohedge Anyone who's worked with Broadcom in the last 2-3 years will tell you, the company is a COMPLETE shit show. Website doesn't work right, numerous dead links, customer support was hired from the SPED school in India, complete fall from the king it once was. Clean house. $AVGO

When an infrastructure boom downshifts into vendor-financed private credit SPVs just to sustain its run-rate, the CapEx cycle is running on fumes. Smart capital is already planning its exit from the financial loop and anchoring directly into the raw baseload utilities that actually power the grid. $BTU.

@zerohedge The real story is they didn't raise guidance despite guaranteeing customer debt for the money to buy their chips.

@zerohedge So Broadcom is basically the middleman making money on both ends here, chip maker and lender facilitator. That's a smart vertical play if it holds up.

@zerohedge Broadcom funds a private-credit SPV that helps Anthropic buy Broadcom-made chips... corporate circularity at its finest. Curious which risk model smiled at this.

@zerohedge So if I hit this right ‘big finance’ is lending Anthropic $36B so it can buy more Broadcom made AI chips. Soooo does everyone in the deal win?… I mean especially Broadcom.

@zerohedge With this revenue? To a trillion dollar company? 😳

@zerohedge

@zerohedge So, BROADCOM is opening the Rent-a-Center or Aaron's Rent of AI computing?

@zerohedge So Apollo and Blackstone are basically financing Anthropic's chip shopping spree. Interesting how the real winner here is Broadcom regardless of who wins the AI race.

@zerohedge Yeah, let’s not forget Apollo Blackstone and other Mainstream Private Credit faced high redemptions resulting in implanting GAP. One of the tools in ATHs used is Circular Financing by the AI Ecosystem capex landscape!

@zerohedge So Broadcom basically makes the chips and also helps finance the deal to buy them? That's some next-level vertical integration right there.

@zerohedge Feels like the whole tech world is just one big circle jerk of financial engineering. Who actually benefits at the end of the day?

@zerohedge Feels like every big deal now is just a loop of the same names shuffling money around.

@zerohedge So the AI arms race is basically just a shell game for chip makers to collect on both ends.

@zerohedge House of cards.

@zerohedge So Broadcom is basically the middleman making money off AI hype and chip deals. Smart play but feels like the whole thing is one big incestuous circle.