NEW YORK, United States / RankWire.AI / – Four major financial firms have lined up $63 billion to pay for AI computing equipment that Broadcom will supply for Anthropic. Bank of America, Blackstone, Citi and Morgan Stanley announced the financing structure on Monday, October 26. The money will fund Broadcom XPU AI accelerators and networking systems. Deliveries are expected to start in 2027 under a compute capacity agreement Broadcom announced earlier.
A new special purpose vehicle will buy the hardware with committed financing from the four firms and lease it to Anthropic. Bank of America, Citi and Morgan Stanley are arranging the first lien debt. Blackstone will be the sole provider of the committed second lien financing. Broadcom will offer residual value support to the vehicle, matching the size of the first lien portion. That amount was not disclosed.
Residual value support works in a similar way to a guarantee, Reuters reported. Broadcom would absorb falls in the value of the equipment up to the level of the senior debt. The structure spreads the cost of AI infrastructure across banks, an alternative asset manager and the chipmaker. Reuters described the transaction as one of the largest debt deals tied to the AI buildout so far.
Hock Tan says AI compute need keeps growing
Hock Tan, President and CEO of Broadcom, said the transaction underscores the power of the company’s technology and its conviction in the AI ecosystem. He said the need for AI compute continues to grow at an extraordinary pace. According to Tan, the deal validates that capital is available to fund that growth. He said Broadcom is uniquely positioned to enable it. Broadcom is based in Palo Alto, California.
Jon Gray, President and COO of Blackstone, said AI demand is creating an enormous opportunity to finance compute capacity. Morgan Stanley’s Dan Simkowitz said the firm had been at the forefront of designing capital solutions for AI infrastructure. Citi’s Vis Raghavan said financing AI demands capital at unprecedented scale. Bank of America’s Jim DeMare said the deal would help mobilise institutional capital at scale. Each executive linked the deal to the rapid growth of AI.
Anthropic IPO filing on the same day
The financing comes as Anthropic pushes ahead with plans to expand its computing power. Apollo and Blackstone previously agreed to finance a $35 billion expansion of its AI capacity under an earlier deal with Broadcom, Reuters said. Anthropic filed for an initial public offering on the same day the $63 billion deal was announced. Broadcom has also struck a chip partnership with Apple this year. Anthropic is the developer of the Claude AI models.
Legal counsel on the deal included Kirkland & Ellis for Blackstone and Latham & Watkins for Bank of America, Citi and Morgan Stanley. Sullivan & Cromwell advised Broadcom, while Evercore acted as its financial adviser. Several technology groups are developing custom AI accelerators for their data centres. Banks and alternative asset managers are playing a growing role in financing that infrastructure. Demand for AI chips has risen sharply as companies train larger models.