Broadcom Is Lending One of Its Biggest Customers $42 Billion to Buy Its Chips

Broadcom agreed to lend a customer tens of billions of dollars to finance purchases of Broadcom chips, effectively placing the company on both sides of the transaction. The arrangement could support demand for its AI-related semiconductor products, but it introduces material customer-financing, credit-risk and revenue-quality concerns that could affect investor assessment of Broadcom's sales growth.