Wall St banks, Blackstone line up $63 billion to finance Broadcom AI chips for Anthropic
AVGO•Bank of America, Blackstone, Citi and Morgan Stanley will provide $63 billion to finance Broadcom AI chips and networking gear for Anthropic, with deliveries expected to begin in 2027.
1. Financing structure
The transaction will be carried out through a newly formed special purpose vehicle that will buy Broadcom AI accelerators and networking equipment and lease them to Anthropic, the companies said. Bank of America, Citi and Morgan Stanley are arranging the first-lien financing, while Blackstone will provide the committed portion of the second-lien financing.
2. Broadcom support and timing
Broadcom is providing “residual value support” to senior debt lenders, agreeing to absorb potential declines in asset values up to an amount equal to the first-lien debt. The release did not disclose the size of that debt. Deliveries are expected to begin in 2027 under a previously announced strategic compute capacity agreement.
3. Earlier expansion deal
Apollo and Blackstone had agreed to finance a $35 billion expansion of Anthropic’s AI computing capacity under a prior agreement with Broadcom. Anthropic filed for a potentially record-breaking IPO on Monday, as disclosures of steep losses and security concerns threatened to test investor appetite.
