Wall Street Funds $63bn Broadcom Compute Deal for Anthropic

Four of Wall Street's biggest financial firms have agreed to fund a US$63bn deal to provide computing power for Anthropic using AI chips called XPUs from Broadcom Inc.

Bank of America, Blackstone, Citi and Morgan Stanley will be the main financial partners in the deal. It is part of a computing capacity agreement that Broadcom announced earlier. Deliveries are expected to begin in 2027.

The size of the deal shows how data centre operators and AI companies are using special financing arrangements to secure enough computing power to meet growing demand.

Anthropic, the company that makes the Claude AI models, will rent the equipment and computing infrastructure once it is installed.

How the financing is structured

The deal will use a newly created company called a special purpose vehicle (SPV). The main financial partners will provide funding to buy Broadcom's XPU AI chips and networking equipment.

The need for computing power for AI continues to grow at an extraordinary pace.

Hock Tan, President and CEO, Broadcom Inc.

The main parts of the deal are:

• Bank of America, Citi and Morgan Stanley will jointly arrange the first-lien financing, which gives lenders a first claim on certain assets if the borrower cannot repay its debts.

• Blackstone will be the only provider of the committed second-lien financing, which ranks behind the first-lien financing in claims on assets.

• Broadcom will provide support for the remaining value of the equipment to the SPV. This support will equal the amount of the first-lien financing.

• The SPV will buy XPU AI chips and networking equipment and lease them directly to Anthropic.

• Deliveries are scheduled to begin in 2027 under Broadcom's existing agreement to provide computing capacity.

Jon Gray, President and COO of Blackstone, says the deal reflects how quickly demand for AI is growing.

"The rapidly growing demand for AI is creating a huge opportunity to finance computing capacity on a large scale," he says.

"We're proud to help Broadcom move this expansion forward."

Banks investing in AI infrastructure

This deal is the latest example of major banks putting together large financing packages specifically for AI infrastructure projects. Instead of treating data centre capacity as a standard lending matter, they are creating financing plans designed for the needs of AI.

Dan Simkowitz, Co-President of Morgan Stanley, says the deal is part of the bank's longer history of developing new financial solutions.

He says: "This transaction represents an important milestone in making the next expansion of AI computing capacity possible."

This transaction represents an important milestone in making the next expansion of AI computing capacity possible.

Dan Simkowitz, Co-President of Morgan Stanley

"Morgan Stanley has led the way in creating financing solutions that can support AI infrastructure on a large scale. We are proud to keep developing new ways to fund these projects through this deal."

Vis Raghavan, Head of Banking and Executive Vice Chair at Citi, highlights how much funding is needed for AI infrastructure projects of this size.

"Financing AI requires funding solutions on a scale never seen before," he says.

"Citi is proud to lead the development of new financing structures. We will use our global expertise in arranging and distributing capital through financial markets to help speed up the construction of vital AI infrastructure that will support technological progress for years to come."

Jim DeMare, Co-President of Bank of America, says: "To advance AI responsibly, we must turn ambitious technology plans into real computing infrastructure.

"Bank of America's experience in infrastructure financing, advisory services and wide range of funding solutions allows us to create new financing structures and bring together large amounts of funding from institutional investors."

Hock Tan, President and CEO of Broadcom Inc., says the deal "shows the strength of our advanced technology and our strong belief in the AI industry.

He adds: "The need for AI computing power is growing at an extraordinary pace. This shows that funding is available to support this growth and that Broadcom is in a strong position to make it possible."

Key partners in the transaction

Several advisory firms helped put the deal's legal and financial arrangements in place. Their work may continue as the equipment is installed and deployed through 2026 and 2027:

Kirkland & Ellis LLP

• Legal adviser to Blackstone. The firm often works on large private investment and infrastructure financing deals.

Latham & Watkins LLP

• Legal adviser to Bank of America, Citi and Morgan Stanley. The firm helped with the financing structure for the SPV.

Sullivan & Cromwell LLP

• Legal adviser to Broadcom, supporting the company's side of the deal.

Evercore

• Financial adviser to Broadcom, helping carry out the deal alongside its legal advisers.

Anthropic

• The AI company that will rent the computing capacity powered by Broadcom equipment when deployment begins in 2027.

• 

  Dan Simkowitz

  Co-President

• 

  Hock Tan

  President and Chief Executive Officer

• 

  Jim DeMare

  Co-President

• 

  Jon Gray

  President and Chief Operating Officer

• 

  Vis Raghavan

  Head of Banking and Executive Vice Chair