Banks and Blackstone Announce a $63B Financing for Broadcom Chips Leased to Anthropic, With Broadcom Providing Residual Value Support on the First Lien

Broadcom now sits at three points in Anthropic's chip supply chain at once: it supplies the hardware, it backs the lenders' downside, and under the S-1 it may also hold Anthropic's convertible notes. On October 26, Bank of America, Blackstone, Citi and Morgan Stanley announced a $63 billion transaction that "enables the deployment of AI compute capacity, leveraging Broadcom's technology, for Anthropic." The announcement says it is part of the strategic compute capacity agreement Broadcom announced earlier, with expected deliveries starting in calendar 2027.

How the structure is described#

A newly formed special purpose vehicle (SPV), with committed financing from the four firms, will buy Broadcom XPU AI accelerators and networking equipment and lease them 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 portion of the second-lien financing, which ranks below the first lien. Broadcom is providing residual value support (RVS) to the SPV for an amount equivalent to the first-lien portion.

An investor presentation Broadcom posted the same day describes RVS this way: Broadcom's potential liability is any difference between 72.5% of the outstanding amounts owed on the lease and the value of the AI racks received. It says peak exposure is expected to be $43 billion and to decline to zero over the five years of lease payments, and that RVS "is not a direct cash outlay." It lists Anthropic's credit, the contractual lease payments, the collateral value of the technology and re-leasing as protections ahead of Broadcom's support.

Reuters reported that, according to two sources familiar with the matter, the first lien is about $43.5 billion, or 69% of the total. The release itself does not give the split. Reuters also noted Moody's view that Broadcom is one of the strongest large technology companies but that its risk would rise if several such transactions were done over a short period.

Broadcom's chief executive, Hock Tan, said in the announcement that the transaction "validates that there is capital available to finance such growth."

Earlier reports on the same theme#

On October 2 we reported Quartz, citing Bloomberg, on banks preparing syndication letters for a $42 billion senior tranche and an $18 billion junior tranche, about $60 billion in all. On October 20 we reported the FT, as summarised by Mint, on a roughly $60 billion "Project North Star" financing for about 1.5GW of Google TPUs, with about $42 billion of senior debt guaranteed by Broadcom. The October 26 announcement has the same outline of senior debt, a Blackstone second lien and Broadcom support, but none of the sources links the $63 billion to either earlier report, and the announcement does not mention Project North Star or Google.

Reuters also recalled an earlier arrangement: the alternative asset manager Apollo and Blackstone had agreed to finance a $35 billion expansion of Anthropic's compute under a prior agreement with Broadcom, in which Broadcom's backstop was up to $29 billion, according to a Broadcom filing.

What Anthropic's S-1 says about Broadcom#

The S-1 does not mention the $63 billion transaction. It describes five-year master equipment leases with Broadcom, accounted for as finance leases, with rent totalling about $161.2 billion excluding interest, payable quarterly once equipment is "ready for service." The leases give Anthropic access to TPU-based compute capacity, some of which began to come online in 2026 with more expected from 2027. For the lease signed in March 2026, which the filing calls the 2026 Lease Arrangement, rent is about $125.2 billion over five years and Broadcom "intends to assign" it to a designated financial partner.

Anthropic's two special purpose subsidiaries are party to the leases; Anthropic guarantees their obligations and they are secured by the leased equipment. Anthropic also deposited cash into a restricted account for Broadcom's benefit in April 2026. The S-1 says Anthropic can issue up to $42.0 billion of convertible notes to Broadcom, or with Anthropic's consent a designated financial partner, solely to finance quarterly rent under the 2026 Lease Arrangement, and that it does not expect to issue any before the IPO is completed. In the second quarter of 2026, Broadcom assigned a portion of its rights under one of the leases to another third party.

The filing does not say whether the SPV in the October 26 announcement is the designated financial partner, and the lease and financing figures in the S-1 and in the announcement are not tied to each other in any source we read.

Limits#

• The announcement and presentation are Broadcom's and the banks' own accounts; the terms, pricing and the split between first and second lien are not in them.
• The $43.5 billion first-lien figure is Reuters's, from two unnamed sources, and Broadcom did not respond to Reuters's request for comment.
• The S-1's lease rent totals and the $63 billion financing are different measures, and we do not reconcile them.
• Whether the October 26 transaction is the same package as the earlier Bloomberg and FT reports is not stated in any source.

Sources#

• Broadcom Investor Relations: Bank of America, Blackstone, Citi and Morgan Stanley announce $63 billion financing structure (October 26, 2026)
• Broadcom: Transaction overview presentation (October 26, 2026)
• Reuters via CNA: Wall Street banks, Blackstone line up $63 billion to finance Broadcom AI chips for Anthropic (October 27, 2026)
• SEC EDGAR: Anthropic, PBC Form S-1, Liquidity and Capital Resources; Risk Factors (October 26, 2026)
• Times of AI: Banks assembling $60B Broadcom chip-financing stack (October 2, 2026)
• Times of AI: Anthropic 'Project North Star' $60B TPU financing (October 20, 2026)