NEW YORK / RankWire.AI / – Bank of America, Blackstone, Citi and Morgan Stanley announced a $63 billion financing structure on Monday, October 26, to fund AI computing capacity for Anthropic. The deal will pay for technology from Broadcom, which will be leased to the AI company. The transaction is part of a strategic compute capacity agreement previously announced by Broadcom. Deliveries are expected to begin in 2027. Reuters described it as one of the largest debt deals tied to the AI buildout.
The financing will run through a newly formed special purpose vehicle backed by committed funding from the four lead financial partners. The vehicle will buy Broadcom XPU AI accelerators and networking products, which will then be leased to Anthropic. Bank of America, Citi and Morgan Stanley are arranging the first lien portion of the financing. Blackstone is the sole provider of the committed second lien financing, which ranks below the senior debt.
Broadcom will provide residual value support to the vehicle for an amount equal to the first lien portion of the financing. The support acts as a guarantee against declines in the value of the equipment. The first lien debt totals about $43.5 billion, or 69% of the financing, Reuters reported, citing two sources. The companies did not disclose the loan breakdown. In an earlier deal, Broadcom’s backstop reached up to $29 billion, according to a filing.
Executives point to soaring AI demand
Blackstone President and Chief Operating Officer Jon Gray said rapidly growing AI demand is creating an enormous opportunity to finance compute capacity at scale. Morgan Stanley Co-President Dan Simkowitz called the deal an important milestone for the next buildout of AI compute. Vis Raghavan, head of banking at Citi, said financing AI requires capital solutions at unprecedented scale. Bank of America Co-President Jim DeMare highlighted the bank’s infrastructure financing expertise.
Broadcom President and CEO Hock Tan said the transaction shows strong conviction in the AI ecosystem. Tan said the need for AI compute continues to grow at an extraordinary pace. The deal validates that capital is available to finance that growth, Tan added. Broadcom has secured other large chip agreements this year, including a $30 billion deal with Apple for US-made chips. Broadcom is based in Palo Alto, California.
Anthropic files for IPO on same day
Anthropic filed for its initial public offering on the same day the financing was announced. The company was valued at $965 billion after a Series H funding round earlier this year. Apollo and Blackstone had previously agreed to finance a $35 billion expansion of Anthropic’s computing capacity under an earlier Broadcom agreement. Moody’s has described Broadcom as one of the strongest large technology companies.
Moody’s also warned that risks would rise if several such transactions were completed over a short period to meet the funding needs of frontier AI labs. Kirkland & Ellis is serving as legal counsel to Blackstone. Latham & Watkins is advising Bank of America, Citi and Morgan Stanley. Sullivan & Cromwell is counsel to Broadcom, with Evercore acting as financial advisor. Equipment deliveries under the agreement are expected to start in 2027.