Bank of America, Blackstone, Citigroup and Morgan Stanley committed $63 billion to finance Broadcom AI chips and networking equipment for Anthropic. A newly established special purpose vehicle will use the financing to purchase Broadcom XPU AI accelerators and networking products for lease to Anthropic. Deliveries are expected to start in 2027.
Bank of America, Citigroup and Morgan Stanley are arranging the first-lien financing. Blackstone alone is providing the committed second-lien financing. Broadcom is providing residual value support for the first-lien amount.
People familiar with the matter told The Wall Street Journal that some banks became increasingly uneasy about joining Project North Star over recent weeks. Some lenders considered withdrawing because rising interest rates and greater difficulty financing AI ventures made the compensation seem insufficient for the risk. Broadcom CEO Hock Tan held last-minute talks with bank executives over a weekend and accepted higher interest rates. The banks also gained greater reassurance about Broadcom guarantees covering losses if Anthropic defaults. Broadcom, Citigroup, Morgan Stanley and Bank of America did not immediately answer requests for comment.
Anthropic publicly submitted an IPO filing to the Securities and Exchange Commission on Monday. Anthropic is seeking a Nasdaq listing for Class A shares under the ticker ANT. The Wall Street Journal reported that Anthropic is targeting a debut during the week of November 16. The Wall Street Journal reported that Anthropic aims to raise at least $100 billion at a valuation between $1.5 trillion and $2 trillion. Reuters reported earlier this month that Anthropic's IPO documents disclosed Broadcom lending of up to $42 billion. Reuters also reported that the documents disclosed a five-year lease worth $125.2 billion for tensor processing unit capacity.
Apollo Global Management and Blackstone announced a $35 billion financing agreement for Anthropic chips earlier this year. Broadcom helped protect lenders against losses under that agreement. The Wall Street Journal reported that Broadcom is also seeking more than $50 billion to finance custom chips for OpenAI. Space Exploration Technologies disclosed a chip-financing commitment of roughly $40 billion with Apollo in a filing on Monday.
Broadcom shares ended Monday at $329.17, an increase of 2.33%. Broadcom shares then gained 1.18% to $333.06 in extended trading. Benzinga Edge rankings place Broadcom's Momentum score in the 14th percentile and Growth score in the 28th percentile.
Broadcom Secures $63 Billion Financing for AI Chips for Anthropic
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Summary
CFT guidelines influenced the $63 billion financing deal as Bank of America, Blackstone, Citigroup, and Morgan Stanley back Broadcom AI chips for Anthropic. A special purpose vehicle will use the funds to buy XPU accelerators and networking gear for lease, with deliveries starting in 2027. The move comes amid heightened scrutiny of liquidity and crypto markets, as major players align with regulatory frameworks.
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