On October 26, 2026, Broadcom Inc. arranged for financial partners to assume portions of agreements to purchase custom AI accelerator racks and related customer leases. In connection with this arrangement, the Company provided a contingent liability backstop to a newly formed special purpose vehicle. The maximum potential undiscounted liability under this backstop is approximately $43 billion upon full deployment of the AI racks. Broadcom states the probability of triggering this obligation is low, supported by the customer's strong profitability trajectory and the sustaining value of the underlying assets. Remedies for lease default include assuming the lease or reselling the racks at a fixed price. Broadcom Inc. designs semiconductors and infrastructure software.
