Broadcom's Wall Street syndicate starts amassing $60B in AI chip financing for Anthropic

Broadcom Inc.'s Wall Street syndicate is starting to gather $60 billion of fresh AI chip financing to benefit Anthropic PBC and other companies, according to people with knowledge of the matter. The debt package has yet to be announced, Bloomberg reported.

How the deal is structured

Banks involved are preparing to send syndication letters for a $42 billion Class A senior-secured tranche. Blackstone Inc. is leading an $18 billion tranche of Class B junior debt, committing $9 billion from various funds and planning to syndicate the rest. A representative for Broadcom declined to comment.

Why Wall Street is watching

The financing has been taking shape for weeks and is being closely watched across Wall Street and Silicon Valley for reassurance that investors are still keen to back AI's buildout amid public backlash against data-center construction. Broadcom wants to sell more chips and other data-center equipment, challenging Nvidia Corp., while AI companies like Anthropic need ever more computing capacity. The potential deal would help firms including Anthropic access chips and other key AI infrastructure, people with knowledge of the talks said in August.

Part of a wider wave of AI debt

The package adds to the hundreds of billions of dollars of debt already raised to build out AI infrastructure. While much of that has gone toward data centers, deals financing chips and servers have multiplied too. In August, Nvidia announced a partnership with six of the biggest names in finance, including Blackstone, to mobilize more than $500 billion for AI, including helping customers fund their purchases of the company's chips. Blackstone's investment in Anthropic has also helped boost the performance of its private equity fund catering to the wealthy.