Anthropic may borrow up to $42bn from Broadcom to lease its chips - report

Investing.com -- Anthropic has disclosed a $42 billion financing agreement with Broadcom as part of a partnership that extends beyond typical chip supply arrangements, Reuters reported Thursday citing the artificial intelligence company's IPO prospectus.

The financing deal allows Anthropic to fund infrastructure spending, with Broadcom providing compute supply, equipment leasing and financing services. This arrangement sets Broadcom apart from other major Anthropic partners like Amazon, which primarily offers cloud infrastructure and distribution for the company's Claude model.

Broadcom shares were trading 1% higher in pre-market Thursday following the report.

Anthropic is projected to become Broadcom's largest customer in its chip design business next year. The convertible note from the financing could fund approximately one-third of Anthropic's $125.2 billion commitment for a five-year lease of tensor processing unit computing capacity.

The financing structure permits Broadcom to designate a financing partner, and the debt instruments could convert into Anthropic shares. Anthropic stated it does not anticipate selling any notes before completing its IPO.

Anthropic announced an expanded partnership with Broadcom and Google in April, providing access to multiple gigawatts of next-generation TPU compute capacity starting in 2027. Google and Broadcom have worked together on several TPU generations.

The IPO filing noted that Broadcom's dual role as hardware supplier and financing partner creates "potential conflicts of interest" that could affect Anthropic's access to necessary computing power. The company also warned that Broadcom's pricing and hardware decisions could impact its ability to obtain sufficient computing infrastructure.

Anthropic deposited cash into a restricted account for Broadcom's benefit in April 2026 and may need to add funds under certain conditions. The filing cautioned that payment or performance defaults could trigger immediate payment of lease obligations while restricting access to the $42 billion financing facility.

Broadcom expects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028.

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