Broadcom is looking to raise over $60 billion in debt to finance AI chips for Anthropic.

      Broadcom is reportedly negotiating with lenders to secure over $60 billion in debt, according to a Bloomberg report published on Thursday. This funding would be used to support the production of AI chips for Anthropic and other firms. The report mentioned sources familiar with the discussions.

      The amounts being negotiated could bring the total to as much as $100 billion. Negotiations are ongoing, and the terms may evolve.

      Blackstone and Apollo Global Management are also reportedly in discussions to participate, according to the same sources. Representatives from Broadcom, Anthropic, Apollo, and Blackstone declined to provide comments.

      Financing Structure

      The financing package is structured in two segments: a junior tranche of approximately $30 billion and a senior-secured tranche ranging from $60 billion to $70 billion, as reported by Bloomberg. Broadcom would provide a guarantee for part of the senior tranche, with a special-purpose vehicle (SPV) responsible for issuing the debt.

      An SPV is a distinct legal entity established to manage specific assets and their associated borrowing. The debt appears on the SPV's financial statements rather than the balance sheet of the parent company. Investors in the SPV have rights to the assets held within it.

      Under this arrangement, Anthropic does not purchase the chips directly; instead, investors buy the chips and lease them back to the company.

      The Initial Deal in the Collaboration

      Broadcom, Apollo, and Blackstone launched the AI XPV partnership in June, initiating it with a $35 billion transaction aimed at enhanced computing capacity for Anthropic, utilizing Broadcom's custom chips and networking equipment. Reuters provided the deal specifics. TNW reported on it in May when Apollo and Blackstone were approaching investors.

      In this initial transaction, Broadcom assumed responsibility for the majority of the debt while Apollo and Blackstone financed the acquisition of the chips. According to Bloomberg, this arrangement allowed the senior tranches to achieve investment-grade ratings, subsequently reducing borrowing costs.

      The upcoming financing may follow a similar model, with the funds being disbursed in phases rather than all at once.

      Targeting 20 Gigawatts

      The partnership aims to fund over 20 gigawatts of computing power for prominent AI laboratories by 2028. Bloomberg estimates the financial requirements to be in the hundreds of billions of dollars, an amount equivalent to the output of 20 nuclear power plants. The initial $35 billion commitment is expected to contribute one gigawatt, as reported by Reuters. With these figures in mind, the partnership has completed about 5% of its stated objective.

      Broadcom's Position

      Broadcom designs specialized chips for Alphabet and Meta and has supply agreements with Anthropic and OpenAI. The CEO indicated in March that the company anticipates AI chip sales to surpass $100 billion in the following year. Broadcom also holds an agreement with Apple valued at over $30 billion and finalized a $200 billion deal with Samsung in July, covering memory, foundry, and advanced packaging through 2030. According to Reuters, tech firms rely on Broadcom's custom silicon to decrease their dependence on Nvidia.

      Following Bloomberg's report, Broadcom’s shares rose by as much as 1.1% in late trading after a brief decline initially. The stock has increased by 5.2% this year up to Thursday’s close.

      The AI XPV partnership was publicly announced by Broadcom, Apollo, and Blackstone in June, stating its purpose to finance computing infrastructure. Bloomberg had reported in May that Apollo and Blackstone were considering a $35 billion financing for Broadcom, which was confirmed in June.

      Anthropic's Additional Fundraising Efforts

      Anthropic is simultaneously seeking funds from various avenues. An investment firm is providing about $1.3 billion for a data center in Texas that will support its systems. Additionally, the company is finalizing a revolving credit facility ahead of its public listing, aiming to raise over $10 billion.

      Quantifying the scale, Anthropic reported second-quarter revenues exceeding $11.5 billion, compared to $787 million the previous year. Its annualized run rate reached $65 billion by the end of July, as per Bloomberg's reporting. The company faced a net loss of nearly $42 billion in 2025, significantly higher than the $8.3 billion loss from the previous year.

      In May, it secured $65 billion at a valuation of $965 billion and has separately signed a computing agreement with SpaceX worth potentially tens of billions over three years. Anthropic aims for its IPO to match or surpass SpaceX's record fundraising of $75 billion, with a possible public filing by the end of this month. SpaceX's final total reached $86.2 billion upon exercising the overallotment option.

      Anthropic is collaborating with Morgan Stanley, Goldman Sachs, and JPMorgan on its listing. As of 19 August, U.S. initial public offerings had amassed $160.6 billion, compared to the record of $195.2 billion set