Banking
Deployment record
In the tracker →- Organisation
- Anthropic
- System
- AI compute capacity
- Stage
- Announced
- Built on
- Broadcom
- 01Bank of America, Blackstone, Citi, and Morgan Stanley are financing a $63 billion transaction to support AI compute capacity for Anthropic using Broadcom technology.
- 02The financing will be executed through a special purpose vehicle that will purchase Broadcom XPU AI accelerators and lease them to Anthropic, with deliveries expected to start in 2027.
- 03The first lien portion of the financing is approximately $43.5 billion, representing 69% of the total, while Blackstone is providing the second lien financing.
Show all 5Show less
- 04Broadcom is providing residual value support to the special purpose vehicle equivalent to the first lien portion, acting as a guarantee against potential asset value declines.
- 05The financing announcement coincided with Anthropic's IPO filing, indicating a significant move in the AI sector's capital landscape.
Anthropic
Follow Deployed on Google
Bank of America, Blackstone, Citi, and Morgan Stanley announced on October 26, a $63 billion financing transaction to fund AI compute capacity built on Broadcom technology for Anthropic. Reuters described it as one of the largest debt deals tied to the AI buildout.
According to the company, the transaction will be executed through a newly formed special purpose vehicle with committed financing from the four institutions. The SPV will purchase Broadcom XPU AI accelerators and networking solutions and lease them to Anthropic.
Deliveries are expected to start in calendar 2027, as part of a strategic compute capacity agreement Broadcom previously announced.
Bank of America, Citi, and Morgan Stanley are arranging the first lien portion of the financing. Blackstone is the sole provider of the committed portion of the second lien financing, which ranks below senior debt.
The first lien portion is about $43.5 billion, or 69% of the total, according to two sources familiar with the matter who spoke to Reuters. The companies' release did not disclose the breakdown.
Broadcom is providing residual value support to the SPV for an amount equal to the first lien portion, effectively a significant guarantee within the structure, according to Reuters.
The week's banking, insurance and brokerage deployments. Tuesdays.
Chipmakers have provided similar guarantees in the past to absorb potential declines in the value of assets such as advanced chips and data infrastructure. Broadcom did not respond to comments.
"The rapidly growing demand for AI is creating an enormous opportunity to finance compute capacity at scale," said Jon Gray, President and COO of Blackstone. Dan Simkowitz, Co-President of Morgan Stanley, called the transaction "an important milestone in enabling the next buildout of AI compute capacity."
"Financing AI demands capital solutions at unprecedented scale," said Vis Raghavan, Head of Banking and Executive Vice Chair at Citi. Jim DeMare, Co-President of Bank of America, said "advancing AI responsibly requires turning ambitious technology plans into tangible compute infrastructure."
Broadcom President and CEO Hock Tan said the transaction "underscores the power of our advanced technology and our strong conviction in the AI ecosystem."
The financing follows an earlier agreement under which Apollo and Blackstone agreed to finance a $35 billion expansion of Anthropic's AI computing capacity with Broadcom. Broadcom's backstop in that deal was up to $29 billion, according to a Broadcom filing cited by Reuters.
Moody's has described Broadcom as one of the strongest large technology companies, but warned that the risk would increase if multiple transactions were undertaken over a short period to meet the sizable funding needs of frontier AI labs.
The announcement came on the same day Anthropic filed for its IPO. Kirkland & Ellis is serving as legal counsel to Blackstone, and Latham & Watkins to Bank of America, Citi, and Morgan Stanley. Sullivan & Cromwell is serving as legal counsel to Broadcom, with Evercore as financial advisor.
Last updated
