Broadcom, Bank of America, Blackstone, Citi, and Morgan Stanley have announced a $63 billion financing transaction designed to support the deployment of artificial intelligence compute capacity for Anthropic.
The transaction is tied to a strategic compute capacity agreement previously announced by Broadcom, with deliveries expected to begin in calendar 2027.
Under the financing structure, a newly formed special purpose vehicle will use committed capital from the financial partners to purchase Broadcom XPU AI accelerators and networking solutions. The equipment will then be leased to Anthropic to support the AI company’s growing compute requirements.
Bank of America, Citi, and Morgan Stanley are arranging the first-lien portion of the financing. Blackstone is serving as the sole provider of the committed portion of the second-lien financing.
Broadcom is providing residual value support to the special purpose vehicle in an amount equivalent to the first-lien portion of the financing.
The structure highlights the growing role of banks, alternative asset managers, and technology providers in financing the substantial computing infrastructure required by leading artificial intelligence companies.
Anthropic is expected to use the Broadcom technology to expand its AI compute capacity as demand grows for increasingly powerful models and related enterprise and consumer applications.
The transaction also gives Broadcom an additional pathway for deploying its XPU accelerators and networking products at significant scale while reducing the upfront capital burden associated with large AI infrastructure projects.
Blackstone manages nearly $1.4 trillion in assets across strategies including private equity, credit, infrastructure, real estate, and growth equity.
Kirkland & Ellis is serving as legal counsel to Blackstone. Latham & Watkins is advising Bank of America, Citi, and Morgan Stanley. Sullivan & Cromwell is serving as legal counsel to Broadcom, while Evercore is acting as Broadcom’s financial advisor.
KEY QUOTES:
“The rapidly growing demand for AI is creating an enormous opportunity to finance compute capacity at scale. We’re proud to help advance this buildout with Broadcom.”
Jon Gray, President And COO Of Blackstone
“This transaction represents an important milestone in enabling the next buildout of AI compute capacity. Morgan Stanley has been at the forefront of innovation in designing scalable capital solutions for AI infrastructure, and we are proud to continue to advance new financing structures through this transaction.”
Dan Simkowitz, Co-President Of Morgan Stanley
“Financing AI demands capital solutions at unprecedented scale. Citi is proud to pioneer innovative structures and leverage our global capital markets structuring and distribution expertise to help accelerate the buildout of critical AI infrastructure that will power the future of technology for years to come.”
Vis Raghavan, Head Of Banking And Executive Vice Chair At Citi
“Advancing AI responsibly requires turning ambitious technology plans into tangible compute infrastructure. Bank of America’s infrastructure financing expertise, advisory capabilities and broad capital solutions platform enable us to deliver innovative structures and mobilize institutional capital at scale. This transaction brings together Broadcom’s leading technology and significant bank capital to accelerate the buildout of compute capacity that will power the next wave of AI innovation.”
Jim DeMare, Co-President Of Bank Of America
“Today’s transaction underscores the power of our advanced technology and our strong conviction in the AI ecosystem. Fundamentally, the need for AI compute continues to grow at an extraordinary pace. This validates that there is capital available to finance such growth and that Broadcom is uniquely positioned to enable it.”
Hock Tan, President And CEO Of Broadcom
