Broadcom Backs $35 Billion Financing for Google’s Custom AI Chips
Apollo Global Management and Blackstone closed a $35 billion financing package in three tranches to fund Google’s custom tensor processing units for Anthropic, with Broadcom backstopping senior debt and Morgan Stanley arranging the deal. Half of the debt was syndicated, making it one of the largest credit transactions in history.
1. Deal Structure and Participants
The financing package totals $35 billion and is divided across three debt tranches arranged by Morgan Stanley. Apollo Global Management and Blackstone provided the capital, Broadcom backstopped the largest senior portion, and roughly half of the debt was syndicated to outside investors.
2. Purpose and Use of Funds
Proceeds will fund leasing of Google's custom tensor processing units (TPUs) to Anthropic, enabling the AI startup to expand its data centers and computing power. Broadcom is also partnering on an AI XPV platform designed to deploy over 20 gigawatts of compute capacity through 2028.
3. Market Implications and Outlook
This transaction stands as one of the largest private credit financings ever and underscores a booming chip-financing market driven by unprecedented AI infrastructure demand. The deal may catalyze further collaborations among technology providers and financiers to support specialized hardware funding needs.
