"Some Were Getting Cold Feet": Hock Tan Pays Up, Guarantees The Loss To Get Anthropic's $63 Billion Chip Deal Done

The good news for the AI trade: the largest AI chip financing ever is done. The less good news: it only got done once the company selling the chips agreed to pay more and eat the losses.

Late on Monday, Bloomberg reported that Broadcom (AVGO) had arranged a $63 billion deal with Bank of America, Blackstone, Citigroup and Morgan Stanley to finance the purchase of chips for Anthropic. Per the joint statement, a newly formed special purpose vehicle will buy Broadcom XPU accelerators and networking gear and lease them to Anthropic, with deliveries starting in 2027. BofA, Citi and MS arranged the first lien; Blackstone is the sole provider of the committed second lien. And the key line: Broadcom "is providing residual value support to the SPV in an amount equivalent to the first lien portion of the financing."