Broadcom Lines Up $63 Billion in Bank and Blackstone Financing for Anthropic's AI Chips

Bank of America, Citi, Morgan Stanley and Blackstone announced a $63 billion financing on Monday, October 26, to pay for AI compute capacity that AVGO will supply to Anthropic. According to Broadcom's release, a newly formed special purpose vehicle will buy Broadcom XPU accelerators and networking equipment and lease them to Anthropic, with deliveries expected to start in calendar 2027.

The structure matters for how investors read the risk. Bank of America, Citi and Morgan Stanley are arranging the first-lien debt, and Blackstone is the sole provider of the committed second-lien portion. Broadcom does not borrow the money, but it gives the vehicle residual value support for an amount equal to the whole first-lien tranche, effectively a guarantee tied to what the chips are worth later. The split between the two tranches, the tenor and the number of chips or gigawatts were not disclosed. CEO Hock Tan said the deal "validates that there is capital available to finance such growth."

Analysts framed it as a revenue event for Broadcom. Truist said the arrangement could generate up to $30 billion in revenue for the chipmaker with limited risk, though the period that figure covers was not visible in the coverage we could read. Morningstar said the deal agrees with its bullish forecast and keeps Broadcom a top stock pick. The shares rose about 0.6% after hours on Monday and were up about 1.1% in premarket trading on Tuesday.

What to watch: whether the first-lien and second-lien amounts are disclosed, how Broadcom accounts for the residual value support in its next filing, and whether delivery timing holds for 2027. The deal also deepens Broadcom's dependence on a single large AI customer at a time when Anthropic is raising capital on several fronts.