Broadcom Lines Up $63B to Finance Anthropic AI Chips
Bank of America, Blackstone, Citi and Morgan Stanley will provide $63 billion to buy Broadcom AI chips for Anthropic, leased via a new financing vehicle.
Bank of America, Blackstone, Citi and Morgan Stanley will provide $63 billion in financing to buy Broadcom's AI chips and networking gear for Anthropic, in one of the largest debt deals tied to the AI buildout. The deal shows how Wall Street is now helping to pay for the computing power behind AI models, not just the companies that build them.
What the deal covers
Broadcom announced the $63 billion financing arrangement on Monday, October 26, together with the four financial firms. A newly formed special purpose vehicle will use the money to buy Broadcom's custom AI accelerators, known as XPUs, and networking equipment, then lease that hardware to Anthropic. Deliveries are expected to begin in 2027. Anthropic will not buy the equipment directly. Instead, it will pay rent for the computing capacity it needs to train and run its Claude AI models, which keeps the hardware off its own balance sheet while still giving it the chips it needs.
How the financing is structured
The deal uses a layered credit structure. Bank of America, Citigroup and Morgan Stanley are arranging the first-lien, or senior, financing. Reuters reported, citing sources familiar with the matter, that the senior loans total about $43.5 billion, or 69 percent of the financing. Blackstone is providing the committed portion of the second-lien financing, which ranks below the senior debt if repayment becomes difficult. Broadcom is also providing what the deal calls residual value support to the lenders. In plain terms, Broadcom will help cover the gap if the value of the chips and equipment falls below a set level tied to the lease contracts. Reuters described this as effectively a significant guarantee in the financing structure, though it is not a guarantee of the full amount lent.
Why it matters for Broadcom and Anthropic
The deal lands days after Anthropic filed for a potentially record-breaking initial public offering. Its filing showed first-half 2026 revenue of about $16.3 billion, up sharply from a year earlier, alongside an $80.7 billion net loss driven largely by accounting adjustments. Morningstar noted that Anthropic's filing also showed about $161 billion in non-cancellable orders to Broadcom, its largest chip supplier. For Broadcom, the financing locks in a huge customer for its custom chips at a time when AI companies are racing to secure capacity. Broadcom chief executive Hock Tan said the need for AI computing continues to grow at an extraordinary pace, and that the deal validates that capital is available to finance such growth and that Broadcom is uniquely positioned to enable it. For Anthropic, the structure solves a practical problem. Training and running frontier AI models needs enormous amounts of hardware, and buying it all outright would tie up huge sums of cash. Leasing through a financed vehicle spreads that cost while still delivering the chips.
What the market made of it
Investors welcomed the deal. Broadcom shares rose about 4 percent on Tuesday, October 27, helping lift the wider market. The Nasdaq Composite gained 1.18 percent that day to 26,477.81, while the S and P 500 rose 0.60 percent. The rally extended a rebound in AI shares that followed Anthropic's IPO filing, after a rocky period for AI-linked stocks. The $63 billion figure is financing for equipment purchases, not revenue already flowing to Broadcom. That distinction matters, because the deal's value will depend on deliveries starting in 2027 and on Anthropic continuing to need the capacity.
What to watch next
Investors will watch for deliveries to begin in 2027, for more detail on Broadcom's residual value exposure, and for Anthropic's IPO progress. The deal is also a test of a wider question: whether debt-funded AI infrastructure can earn enough return to service its costs, or whether the buildout is running ahead of demand.
Sources
- Reuters - https://www.devdiscourse.com/article/international/3997680-wall-street-banks-blackstone-line-up-63-billion-to-finance-broadcom-ai-chips-for-anthropic?amp - Morningstar - https://www.morningstar.com/stocks/broadcom-new-anthropic-financing-deal-agrees-with-our-bullish-forecast-this-top-pick - Malay Mail - https://www.malaymail.com/news/money/2026/10/28/ai-stocks-lift-wall-street-ahead-of-fed-decision-and-tech-earnings/240879