Broadcom has started raising $60 billion in debt to help Anthropic and other companies pay for AI chips and infrastructure, Quartz reported Friday, citing Bloomberg. Wall Street banks plan to syndicate a $42 billion senior-secured tranche, while Blackstone is leading an $18 billion junior tranche.

What Happened

According to Bloomberg, as cited by Quartz, the package has two layers. The Class A tranche of $42 billion is senior and secured, and banks are preparing to sell it to investors. The Class B tranche of $18 billion sits below it, and Blackstone, which is leading that portion, expects to commit about $9 billion through its own funds and syndicate the rest.

The financing follows details in Anthropic's IPO prospectus, reported Thursday, that Broadcom agreed to lend the AI company up to $42 billion for infrastructure spending. That facility would cover about a third of Anthropic's five-year, $125.2 billion commitment to lease computing capacity built on Google's tensor processing units, or TPUs. The loans to Anthropic are structured as convertible notes, which could turn into Anthropic equity and give Broadcom room to bring in financing partners, Quartz said. The reports did not spell out how the $60 billion package maps onto the Anthropic facility.

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Anthropic is expected to become Broadcom's largest compute customer in 2027, according to Quartz.

Why It Matters

The deal shows a chip designer using outside credit to help its biggest customer buy its products. Splitting the debt into senior and junior layers lets banks hold the safer piece while Blackstone and other credit funds take more risk for higher returns. A report from Stocktwits, published on Yahoo Finance, noted that the package pushes debt financing beyond data center buildings and into the chips and servers themselves.

The arrangement also concentrates exposure. Anthropic's prospectus flagged potential conflicts from Broadcom acting as both supplier and lender, including over pricing, equipment availability and what happens to lease obligations if Anthropic misses a payment. With Blackstone and the banks now involved, those risks extend to the investors who buy the debt.

Context

Broadcom set up an AI infrastructure financing platform with Apollo and Blackstone in June. Its first transaction, worth $35 billion, supported more than 1 gigawatt of capacity for Anthropic, according to Stocktwits. Anthropic has also announced an expanded agreement with Broadcom and Google for 3.5 gigawatts of TPU-based capacity, with operations starting in 2027, Quartz reported.

Investors have been cautious on Broadcom's stock. Shares were down about 1% for the year before the report, while SOXQ, an exchange-traded fund that tracks chip stocks, was up 74%, according to Stocktwits.

What to Watch

The next steps are the syndication of the $42 billion senior tranche, final pricing on both layers and whether other credit funds join Blackstone in the junior debt. Anthropic's IPO roadshow will also put the Broadcom lending arrangement, and the conflicts the company itself disclosed, in front of public-market investors for the first time.