Broadcom, financial firms agree on US$63 billion funding for Anthropic chip purchases

Broadcom's CEO Hock Tan helped secure a $63B debt deal for Anthropic to lease specialized chips. Broadcom provided financial guarantees to reassure banks, which were initially hesitant due to AI market risks and rising interest rates. The deal, led by Bank of America, Citigroup, and Morgan Stanley, was finalized after Tan agreed to higher interest rates and enhanced guarantees.

Broadcom CEO Hock Tan reportedly secured a $63B debt deal for AI company Anthropic, the largest AI debt deal ever. The deal involves over $40B in commitments from banks to lease specialized chips. According to a media report, Tan spent nearly two months negotiating the deal.

Bank of America, Blackstone, Citigroup, and Morgan Stanley committed $63B to finance Broadcom's AI chips and networking gear for Anthropic, with Broadcom providing residual value support. Banks initially considered pulling out due to rising interest rates and AI financing risks, but Broadcom CEO Hock Tan negotiated higher interest rates and guarantees. Anthropic filed for an IPO targeting a $1.5T-$2T valuation. Broadcom's shares closed 2.33% higher on Monday.

Anthropic's IPO filing boosted Nvidia, Broadcom, and Micron, with a reported $2 trillion valuation splitting investors. The company plans to list on Nasdaq as ANT, with first-half revenue of $16.3 billion. Analysts are divided on the valuation, with some citing potential gains for Amazon, Alphabet, and Broadcom. The IPO could begin trading as soon as Nov. 16, testing Wall Street's appetite for AI.

Broadcom, Bank of America, Blackstone, Citigroup, and Morgan Stanley have raised $63 billion to finance Anthropic's AI semiconductor purchases. Broadcom will cover potential losses from equipment value declines. The deal involves leasing Broadcom's custom AI chips and networking equipment to Anthropic, with financial firms providing loans and investments. The transaction is part of a broader AI computing infrastructure supply contract involving Broadcom, Google, and Anthropic.

Broadcom secured a $63B financing deal with Wall Street firms to fund AI chip supplies for Anthropic. The transaction involves a special purpose vehicle purchasing and leasing chips to Anthropic, with Broadcom guaranteeing residual value. This deal highlights demand for AI infrastructure investment.