Broadcom Partners With Wall Street Bigwigs To Forge $63B Deal To Power Anthropic’s AI Hardware

• A syndicate of premier financial institutions created a dedicated special purpose vehicle (SPV) to buy Broadcom custom AI processors and networking gear, which will be leased directly to Anthropic. 
• Bank of America, Citigroup, and Morgan Stanley are arranging the first-lien senior debt; Blackstone is providing the second-lien financing.
• Shipments of the Broadcom XPU AI accelerators and networking equipment are expected to start in calendar year 2027 under a previously announced compute capacity agreement. 

A consortium of major Wall Street financial institutions and chipmaker Broadcom Inc. (AVGO) announced a landmark $63 billion financing arrangement Monday to supply hardware to artificial intelligence startup Anthropic.

The agreement brings together Bank of America Corp.(BAC), Blackstone Inc.(BX), Citigroup  Inc.(C), and Morgan Stanley (MS) to fund the capital-heavy hardware essential for training and running next-generation artificial intelligence models.

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Under the terms of the deal, the consortium formed a special purpose vehicle (SPV), which will use the capital to purchase Broadcom's specialized XPU AI accelerators and high-speed networking solutions. The hardware will then be leased to Anthropic, with deliveries slated to commence in calendar year 2027.

AVGO stock added about 1.3% after-hours on Monday. 

Who Is Paying?

The transaction uses a layered credit structure to balance risk and scale. Bank of America, Citi, and Morgan Stanley are serving as lead arrangers for the first lien portion of the debt. Alternative asset manager Blackstone is acting as the sole provider for the committed second lien portion.

The primary claim, or first lien, takes precedence over the second lien during asset liquidation, ensuring initial debts are fully settled.

"Financing AI demands capital solutions at unprecedented scale," said Vis Raghavan, head of banking and executive vice chair at Citi, highlighting the unprecedented financial requirements of current technology developments.

Scaling Infrastructure Amid Rising Demand

The agreement underscores the massive capital outlay required to build out global AI computing infrastructure. As software developers seek greater computing capacity, chip suppliers and cloud operators are increasingly turning to Wall Street to fund server and hardware acquisitions.

Broadcom’s initiative reflects growing momentum among semiconductor producers to challenge industry leader Nvidia Corp (NVDA), which also made similar arrangements earlier this year.

"Fundamentally, the need for AI compute continues to grow at an extraordinary pace," Broadcom President and Chief Executive Officer Hock Tan said in a statement. "This validates that there is capital available to finance such growth and that Broadcom is uniquely positioned to enable it."

AVGO Stock: Retail View 

Retail sentiment on Stocktwits was ‘bearish’ with ‘normal’ message volumes. 

AVGO stock has lost about 6% year-to-date.

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