Broadcom Backs Anthropic with $60 Billion Debt Package to Challenge Nvidia

Broadcom Inc. (NASDAQ:AVGO) is strengthening its position in the AI infrastructure market by combining custom chip development with substantial financing support for customers needing expensive computing capacity. The company is backing Anthropic's expansion by helping secure Google-developed chips and challenging NVIDIA Corp. (NASDAQ:NVDA) in the AI computing space. Broadcom has agreed to provide up to $42 billion in lending to support Anthropic's plans for securing large amounts of computing capacity, with a $125.2 billion lease for tensor processing unit (TPU) capacity starting in 2027.

Wall Street banks began syndicating part of a $60 billion debt package to finance Anthropic’s lease of Google semiconductors. Broadcom is partially guaranteeing the financing, which could lower Anthropic’s borrowing costs. About $42 billion of senior secured loans backed by Broadcom entered syndication, while another $18 billion of junior debt without Broadcom guarantees is expected later. Blackstone has already committed about $9 billion to that tranche.

Broadcom is developing tensor processing units with Google to compete more directly with NVIDIA’s dominance in AI chips. The company’s latest transaction follows an earlier $35 billion financing with Apollo and Blackstone tied to its 20-gigawatt 'AI XPV' platform. Broadcom’s quarterly report also indicated that Anthropic could issue as much as $42 billion in convertible notes to Broadcom to fund lease payments.

BofA Securities analyst Tom Curcuruto estimates Broadcom’s AI financing vehicle could support about $370 billion of senior debt by mid-2029 at a 20-gigawatt scale, including roughly $150 billion of new issuance in 2027. While this structure helps Broadcom turn strong AI chip demand into actual deployments, it also exposes the company to risk by backstopping some customer lease obligations. Broadcom shares were trading higher by 4.11% at $377.40 at the time of publication.