❯ Broadcom’s bank group starts syndicating $60 billion of AI chip debt, giving Anthropic’s compute leases their funders

$60 billion looks for buyersAccording to Bloomberg on October 2, citing people familiar with the matter, Broadcom’s Wall Street bank group has begun gathering about $60 billion of AI chip financing to benefit Anthropic and other companies. The banks are preparing to send investors syndication letters for a $42 billion Class A senior secured portion. The deal has not been formally announced, and pricing, maturity and closing date have not been disclosed.

Why a chipmaker arranges debtBroadcom designs custom AI chips and networking equipment for large customers. According to The Next Web in August, under this structure Anthropic does not buy the chips directly. Investors pay for them and lease the hardware to the company. Broadcom would also backstop part of the senior layer so those securities can earn investment-grade ratings and lower borrowing costs.

From $35 billion in June to nowBroadcom, Apollo and Blackstone formed a partnership in June whose first transaction was $35 billion to expand Anthropic’s compute. In August Broadcom was reported to be in talks for more than $60 billion of new debt. This week’s plan is a $42 billion senior layer plus an $18 billion junior layer led by Blackstone, which is taking $9 billion itself and syndicating the rest (FourWeekMBA, relaying Bloomberg).

Creditors bet on Anthropic's behalfThe $42 billion figure matches the ceiling of the loan Broadcom agreed to make to Anthropic in the draft prospectus, but neither report confirms they are the same instrument. What is clear is that bond investors advance the money for the chips and are repaid from Anthropic’s future lease payments. Their question is not whether Broadcom’s chips are good, but whether Anthropic’s revenue can cover the rent for years on end.

▪ SIGNALWhen the supplier guarantees, private credit pays and the customer only pays rent, selling AI chips has become a credit business, and an order is only as good as the borrower’s cash flow.