Banks and Blackstone Line Up $63B to Finance Broadcom Chips for Anthropic

Broadcom (AVGO) announced on Monday that a newly formed special purpose vehicle (SPV) has secured $63 billion of committed financing to buy Broadcom XPU AI accelerators and networking equipment and lease them to Anthropic. Bank of America (BAC), Citi (C) and Morgan Stanley (MS) are arranging the first-lien financing, and Blackstone (BX) is the sole provider of the committed second-lien piece. The financing supports a compute capacity agreement Broadcom announced earlier, with deliveries expected to begin in calendar 2027.

How the structure works

Residual value support means Broadcom stands behind what the equipment will be worth at the end of the lease, which protects the senior lenders if the chips are worth less than expected. The announcement did not disclose the split between the first and second liens, the size of Broadcom's support in dollars, pricing, maturities or ratings.

Blackstone President and COO Jon Gray said, "The rapidly growing demand for AI is creating an enormous opportunity to finance compute capacity at scale." Broadcom CEO Hock Tan said the need for AI compute continues to grow at an extraordinary pace, and Citi's Vis Raghavan said financing AI demands capital solutions at unprecedented scale.

How it fits Broadcom's Anthropic agreement

In an April 6 filing, Broadcom said Anthropic would access about 3.5 gigawatts of compute through Broadcom beginning in 2027, as part of multiple gigawatts of TPU-based capacity Anthropic has committed to. The filing said Anthropic's consumption of that capacity depends on its continued commercial success, and that the parties were in discussions with operational and financial partners for the deployment. Monday's announcement is the financing piece of that plan.

Earlier reports described a debt package of about $60 billion, with roughly $42 billion of senior debt and $18 billion of junior debt. By our calculation, the announced $63 billion is about $3 billion, or 5%, larger than that figure, though the company did not confirm the earlier breakdown.

What it means for investors

The deal lets Anthropic add chips without paying for them up front, because lease payments, not Anthropic's balance sheet, service the debt. For Broadcom it turns a large future order into a funded one, but it also puts the company behind the first-lien debt through residual value support, so its exposure grows with the size of the deal. For the banks and Blackstone, the second-lien piece carries more of the risk if Anthropic's demand or the value of the equipment disappoints.

Sources: Broadcom Inc., financing announcement with Bank of America, Blackstone, Citi and Morgan Stanley (Oct. 26), and Broadcom's April 6 Form 8-K. Earlier tranche figures are as reported. This is informational, not a recommendation to buy or sell.