The package and the players
Broadcom assembled a $63 billion plan to fund equipment for Anthropic, including AI chips for data centers. The financing was organized with the involvement of Bank of America Corp., Citigroup Inc., and Morgan Stanley, and, according to people familiar with the matter, additional banks are likely to file commitments over the next few days.
Of the total, banks are lending about $42 billion. One person said the banks have underwritten the senior secured portion of the package. Representatives for Broadcom, Blackstone, Bank of America, Citi, and Morgan Stanley declined to comment.
How the money flows
Think vendor financing, but formalized: a special purpose company will borrow the funds to buy the tech, then lease the equipment to Anthropic. Those lease payments are intended to retire the debt over time.
The $42 billion slice is senior secured, giving lenders the first claim on the special purpose company's assets. For that slice, Broadcom will furnish residual value support - serving as a financial backstop.
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Bonds on deck and a watchful market
Starting as soon as next year, the banks intend to market up to roughly $21 billion of high-grade bonds as a component of the package. The notes are likely to run for around five years, with principal expected to be paid down during the life of the bonds, and the final size and timing will depend on market conditions, one person said.
The banks' roughly $42 billion of loans have a takeout path as well, with up to half slated for refinancing into the US high-grade corporate bond market during the first quarter of 2027. Wall Street and Silicon Valley are watching this closely as a gauge of demand for AI financing. Companies have already borrowed more than $455 billion globally this year for AI-related spending, though some money managers are turning more cautious as more supply lines up.
Blackstone Inc. is anchoring the remaining piece with a $9 billion commitment. This marks Broadcom's second sizable chip-finance package of the year, following a $35 billion transaction that involved Apollo and Blackstone. Separately, SpaceX entered into an equipment-finance lease of about $40 billion with Apollo this month to fund chips for its AI efforts.
Why it matters for investors
The test here is how much AI hardware funding can migrate from bank books to bond buyers, and at what price. Watch two pressure points for spreads and yields in investment grade credit: the potential near term bond supply tied to this package, and the 2027 window when up to half the bank loans are expected to be refinanced into the US high grade market.
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