NEW YORK, United States / RankWire.AI / – Bank of America, Blackstone, Citi and Morgan Stanley have agreed a $63 billion financing package to fund AI computing capacity for Anthropic using Broadcom technology. The deal was announced on October 26. It forms part of a strategic compute capacity agreement previously announced by Broadcom. Deliveries of the equipment are expected to begin in calendar 2027. Reuters described it as one of the largest debt deals linked to the AI buildout.
The transaction will run through a newly formed special purpose vehicle backed by committed financing from the four lead partners. The vehicle will buy Broadcom XPU AI accelerators and networking products. It will then lease the equipment to Anthropic. The structure allows the AI developer to secure large amounts of computing power without buying the hardware outright. Broadcom designs custom chips for several technology companies. Anthropic develops the Claude family of AI models.
Bank of America, Citi and Morgan Stanley are arranging the first lien portion of the financing. Blackstone is the sole provider of the committed portion of the second lien financing. Broadcom is providing residual value support to the vehicle equal to the amount of the first lien debt. Reuters said this works like a guarantee against falls in the value of the equipment. The size of the first lien debt was not disclosed.
Executives point to soaring AI demand
Broadcom President and Chief Executive Hock Tan said the transaction underscored the strength of the company’s technology and its conviction in the AI ecosystem. He said demand for AI compute continues to grow at an extraordinary pace. Tan added that the deal shows capital is available to finance that growth. Blackstone President Jon Gray said rising AI demand was creating an enormous opportunity to finance compute at scale.
Morgan Stanley Co-President Dan Simkowitz called the deal an important milestone for the next buildout of AI compute capacity. Vis Raghavan, Citi’s Head of Banking, said financing AI requires capital solutions at an unprecedented scale. Bank of America Co-President Jim DeMare said the deal combines Broadcom’s technology with significant bank capital. He said it would speed up the buildout of compute capacity for the next wave of AI.
Financing follows earlier $35 billion deal
The agreement builds on earlier arrangements to fund Anthropic’s computing needs. Apollo and Blackstone had previously agreed to finance a $35 billion expansion of Anthropic’s AI capacity under a prior agreement with Broadcom, according to Reuters. Anthropic also filed for an initial public offering on Monday, the news agency reported. Broadcom’s chip business has grown through other partnerships, including a chip production deal with Apple.
Kirkland & Ellis is acting 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, with Evercore acting as financial adviser. Large technology companies are investing heavily in AI hardware, including custom AI chips designed for their own data centres. The deal shows the growing role of banks and asset managers in that spending.