Broadcom-backed AI chip financing reaches $60bn as Wall Street tests debt demand

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Broadcom AI chip financing $60bn

Highlights

Bank of America, Citigroup, and Morgan Stanley launched a record $60 billion debt package to finance Anthropic's lease of Google chips, with payments starting after 2027 delivery.
The package includes $42 billion of Broadcom-backed senior secured loans and $18 billion in junior debt, with Blackstone backing roughly $9 billion of the junior tranche.
Investor appetite for AI-linked debt remains under scrutiny, with broader syndication of Anthropic's junior tranche likely delayed until after its planned IPO later this year.

Structure of the record chip financing

As first reported by the Financial Times, Bank of America, Citigroup and Morgan Stanley on Monday began offering parts of a new $60 billion debt package to other banks after committing to finance Anthropic's lease of Google chips. The transaction is described as the largest chip-financing deal so far and is designed to support Anthropic's semiconductor orders for 2027, with lease payments starting after the chips are delivered.

The package includes about $42 billion of senior secured loans supported by Broadcom, which could later be placed with a wider investor base through private placements or the investment-grade bond market, helped by Broadcom's A-minus credit rating. A further $18 billion of junior debt without Broadcom guarantees is expected to be launched later by the same banks, with Blackstone already committing funds to roughly $9 billion of that junior tranche and participating in syndication of the remainder.

Broadcom is also developing tensor processing units with Google as it seeks to challenge Nvidia's position in the market. Anthropic could additionally issue up to $42 billion of convertible notes to Broadcom to cover lease payments, according to Broadcom's latest quarterly report and a term sheet shown to investors, the people said.

AI borrowing appetite faces investor scrutiny

The financing is being closely watched as a signal of demand for AI-linked debt at a time when investors are asking for higher risk premiums from technology groups making heavy capital commitments to artificial intelligence. Concerns have grown that vast spending on advanced models and computing infrastructure may not translate into durable profits over the long term.

Much of the industry's borrowing is going toward increasingly expensive advanced chips, making funding structures like this one more important for companies racing to secure computing capacity. The new package follows Broadcom's $35 billion deal with Apollo and Blackstone a few months ago, when the chipmaker unveiled its 20-gigawatt AI XPV platform aimed at helping companies such as Anthropic and OpenAI obtain computing power.

Because lenders in the junior tranche would be exposed directly to Anthropic's credit risk, banks may wait to tap the market more broadly until after a planned initial public offering later this year, when investors would be able to review the company's financial disclosures. Bank of America, Citigroup, Morgan Stanley and Blackstone declined to comment.

In our earlier article on crypto investors’ search for AI projects with clearer real-world use cases, we looked at Sentient’s SENT token and its attempt to build an open marketplace for AI models with payments, staking, and governance. We also noted that a potential Anthropic IPO was viewed as a possible catalyst that could spill over into sentiment toward smaller AI-linked opportunities, while highlighting risks such as token unlock overhang, limited current utility, and intense competition in decentralized AI.

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