NEW YORK, Oct. 27 (TodayViralUSA) — Four of Wall Street’s biggest names have committed $63 billion to finance a massive purchase of Broadcom artificial intelligence chips for Anthropic, one of the largest financing packages yet assembled for AI computing capacity. Broadcom shares rose on Tuesday as investors cheered the deal.
Bank of America, Blackstone, Citi and Morgan Stanley announced the transaction late Monday. It is part of a compute capacity agreement Broadcom announced earlier with the AI developer, with deliveries expected to begin in calendar 2027.
How the deal works
Rather than Anthropic buying the hardware outright, a newly formed special-purpose vehicle will use the committed financing to purchase Broadcom’s custom XPU AI accelerators and networking equipment, then lease them to Anthropic.
Bank of America, Citi and Morgan Stanley are arranging the first-lien portion of the financing, while Blackstone is the sole provider of the committed second-lien portion. Broadcom itself is providing residual value support to the vehicle for an amount equal to the first-lien financing, a commitment that cushions lenders if the equipment loses value.
“Capital available to finance such growth”
“Fundamentally, the need for AI compute continues to grow at an extraordinary pace,” Broadcom President and CEO Hock Tan said in the announcement. “This validates that there is capital available to finance such growth and that Broadcom is uniquely positioned to enable it.”
Blackstone President Jon Gray said the rapid growth in AI demand is “creating an enormous opportunity to finance compute capacity at scale.”
Market reaction
Broadcom stock gained about 3% on Tuesday and helped lift chipmakers and the broader market, with the Nasdaq outpacing the S&P 500 as traders looked ahead to Wednesday’s Federal Reserve decision and earnings from Alphabet and Microsoft.
The deal lands days after Anthropic filed for a Nasdaq initial public offering, and it underscores how AI developers and their suppliers are increasingly turning to off-balance-sheet structures and private credit to pay for the enormous data center build-out the technology demands.
Sources & Credits
- Broadcom (press release): Bank of America, Blackstone, Citi and Morgan Stanley Announce Landmark $63 Billion Financing Structure
- AP News: US stocks tick higher as Broadcom and other AI companies lift the market
- Reuters via Investing.com: Wall Street banks, Blackstone line up $63 billion to finance Broadcom AI chips for Anthropic
- CNBC: Wall Street sees this chip stock as the big winner from Anthropic IPO
Image: Broadcom offices in San Jose, California (file photo), by Coolcaesar, CC BY-SA 4.0, via Wikimedia Commons.
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