Broadcom is raising $60 billion in debt financing to help Anthropic and other companies obtain artificial intelligence chips and infrastructure.
The package has two layers: a $42 billion Class A senior-secured tranche and an $18 billion Class B junior debt tranche. Bank of America, Citigroup and Morgan Stanley are among the banks syndicating the senior-secured debt.
Blackstone is leading the junior tranche and plans to commit $9 billion from its own funds. The rest of the $18 billion junior tranche will be syndicated.
The financing is tied to Broadcom’s agreement to lend Anthropic up to $42 billion for infrastructure spending. Anthropic has committed $125.2 billion through a five-year lease for tensor processing unit computing capacity.
Broadcom’s $42 billion commitment would cover approximately one-third of Anthropic’s $125.2 billion commitment. The scale of those commitments has put the proposed financing under close scrutiny from investors and dealmakers on Wall Street and in Silicon Valley.
For lenders, the senior portion includes several forms of protection and potential upside. The senior-secured notes could be converted into Anthropic equity. Broadcom will also provide residual value support backing the $42 billion senior-secured part of the package.
Broadcom can bring in a financing partner. Part of the senior-secured notes will likely later be refinanced in the bond market.
The transaction has been taking shape for weeks. Representatives for Broadcom and all the banks declined to comment.
Large financial groups have already been seeking a bigger role in financing artificial intelligence infrastructure. In August, Nvidia announced a partnership with six of the biggest names in finance, including Blackstone, aimed at mobilising more than $500 billion for AI.
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