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

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."