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Broadcom Backs Anthropic's $40B-$63B TPU Chip Financing After Lender Hesitation

2 articles2 sourcessince Oct 26Last article

Overview

AISummary of 2 articles

Broadcom CEO Hock Tan held weekend talks with bank executives to get them to finalize commitments on a $40 billion debt deal that funds Anthropic's purchase of Broadcom's TPUs, according to The Wall Street Journal.

Some banks were hesitating, and Broadcom agreed to pay higher interest rates on the loans to win their support.

A later report, relaying the same WSJ reporting, puts the financing at $63 billion. It says a shell company borrowed from banks and Blackstone to buy chips that Anthropic leases, and Anthropic's rent payments will repay the loans. Broadcom promised to cover most of the loans if Anthropic stops paying, because lenders were uneasy about lending against a startup alone.

The reports do not say whether all lenders have since committed. The $40 billion and $63 billion figures are not reconciled in the sources.

Written by AI from the articles below · updated Oct 27, 7:15 AM ET

Check the sources:

Latest developmentOct 27, 6:58 AM ET
Broadcom agreed to back Anthropic's $63B chip financing after weekend talks

Developments

2 developments

  1. Oct 27, 6:58 AM ET · 1 article
    Anthropic's $63B chip financing closes with Broadcom backstop and higher rates
    Rohan Paul: Broadcom agreed to back Anthropic's $63B chip financing after weekend talks
  2. Oct 26, 11:57 PM ET · 1 article
    Broadcom CEO Hock Tan intervened to secure lender commitments for Anthropic's $40B AI debt deal
    Andrew Curran: Broadcom CEO Hock Tan pushed lenders to finalize Anthropic's $40 billion debt deal

Article timeline

The articles in this story. Times are ET.

Oct 27
  1. Rohan PaulX
    Broadcom agreed to back Anthropic's $63B chip financing after weekend talks

    AIRohan Paul relays a WSJ report that Anthropic's $63B chip financing closed only after Broadcom CEO Hock Tan negotiated with bank executives over a weekend and agreed to higher interest rates. A shell company borrowed the money from banks and Blackstone to buy chips that Anthropic leases, and Anthropic's rent payments will repay the loans. Broadcom promised to cover most of the loans if Anthropic stops paying.

    Image from @rohanpaul_ai's post
Oct 26
  1. Andrew CurranX
    Broadcom CEO Hock Tan pushed lenders to finalize Anthropic's $40 billion debt deal

    AIThe Wall Street Journal reports that Broadcom CEO Hock Tan held weekend talks with bank executives to get them to finalize commitments for a $40 billion debt deal. The deal funds Anthropic's purchase of TPUs, and Broadcom agreed to higher interest rates on the loans to win lender support after some banks hesitated.

    Image from @AndrewCurran_'s post

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