Wall Street, Blackstone line up $63B for Anthropic chips

Bank of America ↗ 0.32%, Blackstone ↘ 1.98%, Citi Citigroup Inc. ↗ 1.36% and Morgan Stanley ↗ 1.86% said on Monday, October 26, that they will provide $63 billion to buy Broadcom's ↗ 4.00% AI chips and networking gear for Anthropic. Reuters called it one of the largest debt deals tied to the AI buildout. The announcement came the same day Anthropic publicly filed for an initial public offering. That timing ties the company's demand for computing power directly to the debt markets.reuters.com

How the structure works

A newly formed special purpose vehicle will use committed financing from the four firms to buy Broadcom XPU AI accelerators and networking equipment, which it will then lease to Anthropic, according to the joint announcement. Bank of America, Citi and Morgan Stanley are arranging the first lien portion. Blackstone is the sole provider of the committed second lien portion. Broadcom is providing residual value support equal to the first lien portion, which Bloomberg described as a backstop on part of the financing. The deal falls under a strategic compute capacity agreement Broadcom announced earlier, and deliveries are expected to begin in calendar 2027.ca.finance.yahoo.com+1

"The need for AI compute continues to grow at an extraordinary pace," Broadcom CEO Hock Tan said. He added that the deal "validates that there is capital available to finance such growth". Blackstone President Jon Gray said rising AI demand is "creating an enormous opportunity to finance compute capacity at scale." Broadcom shares rose about 0.6% in after-hours trading after the announcement, Investing.com reported.finance.yahoo.com+1

Background to the deal

Apollo and Blackstone had already agreed to finance a $35 billion expansion of Anthropic's computing capacity under an earlier agreement with Broadcom, Reuters reported. In an April filing, Broadcom said Anthropic would access about 3.5 gigawatts of next-generation TPU-based capacity through Broadcom starting in 2027. Broadcom added that how much of it Anthropic uses depends on the company's "continued commercial success". Anthropic's S-1 puts rent for a five-year Broadcom equipment lease at about $125.2 billion, excluding interest, EconoTimes noted.econotimes.com+2

The IPO backdrop

Earlier Monday, Anthropic filed its S-1 to list Class A shares on the Nasdaq Global Select Market under the symbol "ANT." The filing reported $16.3 billion in revenue for the first half of 2026 and a net loss of more than $80 billion. Most of that loss came from changes in the value of notes and other instruments. According to CNBC, the company has about $417 billion in future compute obligations, with another $125 billion to $150 billion expected from capacity deliveries between 2028 and 2031. CBS News reported that the filing names access to capital, including debt financing, as a key factor for the company's future growth.cnbc.com+3