Wall Street and Blackstone Finance Anthropic with $630B for Broadcom Chips
Bank of America, Blackstone, Citi, and Morgan Stanley are providing a $630 billion debt financing deal for Anthropic to procure Broadcom AI chips and networking equipment through a special purpose entity. This represents one of the largest debt transactions ever for artificial intelligence compute infrastructure, highlighting the growing and vital role of traditional financial institutions and alternative asset managers in supporting skyrocketing AI hardware demands. The hardware will be purchased by a special purpose entity and leased to Anthropic starting in 2027, with Broadcom providing residual value support to cover potential asset depreciation losses for lenders.
## BACKGROUND
Special purpose entities are subsidiary structures used by companies to isolate financial risk and keep liabilities off their main balance sheets. Residual value support acts as a financial guarantee where the hardware manufacturer agrees to absorb a portion of potential losses if the equipment loses value.