Banks Provide $63 Billion to Finance Broadcom AI Hardware

Bank of America, Blackstone, Citi, and Morgan Stanley are establishing a $63 billion special purpose vehicle to purchase AI accelerators and networking equipment from Broadcom Inc. The financing vehicle will acquire Broadcom's XPU AI accelerators and networking solutions, which will then be leased to the AI company Anthropic, with deliveries scheduled to begin in 2027.

Bank of America, Citi, and Morgan Stanley are arranging the first-lien financing, while Blackstone provides the committed second-lien portion. To protect senior debt lenders, Broadcom is offering residual value support, guaranteeing to absorb potential declines in asset value up to the amount of the first-lien debt. This arrangement follows a previous $35 billion expansion agreement involving Apollo and Blackstone.

Broadcom CEO Hock Tan stated the deal validates that capital is available to finance AI growth and that the company is uniquely positioned to enable it. This financing occurs as Anthropic has filed for an initial public offering, with potential valuations estimated between $1.5 trillion and $2 trillion, despite reports of steep losses and security concerns.