Broadcom to Lend Anthropic Up to $42bn for Its Chips, Reports Reuters
Anthropic's IPO prospectus reveals that Broadcom has agreed to lend up to $42 billion to facilitate its AI infrastructure, as reported by Reuters. This substantial loan could cover approximately one-third of the committed $125.2 billion for a five-year lease of tensor processing units (TPUs), designed by Google in collaboration with Broadcom.
The details were disclosed by Echo Wang, Milana Vinn, and Max A. Cherney for Reuters, though TNW has not reviewed or independently verified the report.
How the Loan Structure Works
The financing will be provided through convertible notes, potentially convertable into Anthropic shares at a later date. Broadcom also has the option to name a financing partner. Notably, Anthropic states in its filing that it does not anticipate selling any notes prior to its IPO.
In April 2026, Anthropic established a restricted account holding cash for Broadcom's benefit. It may be required to deposit additional funds under certain circumstances. The same month, Anthropic expanded its deal with Google and Broadcom, securing multiple gigawatts of next-generation TPU capacity starting in 2027.
Potential Conflicts and Risks
Anthropic acknowledges in its prospectus that Broadcom's dual role as a hardware supplier and financier presents "potential conflicts of interest." These could impact Anthropic's access to necessary computing power. Furthermore, Broadcom's decisions regarding pricing and hardware may limit the extent of infrastructure purchases.
The filing also warns about payment defaults, stating that such events could trigger early maturity of lease obligations, leaving Anthropic with limited ability to utilize the $42 billion facility to cover them.
A Growing Relationship
According to Reuters, Anthropic is poised to become Broadcom's largest compute customer in 2027, with projected AI chip revenues of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028 for Broadcom.
This deal follows Nvidia's strategy of utilizing its balance sheet to support chip sales, as reported by the Financial Times this week.
Some analysts express concern about the concentration of risk, stating, "It feels that there’s quite a concentrated bet right now on two companies being able to generate enough revenues to support all the financing that’s happened" (Robert Leitao, Rothschild & Co).
Anthropic's prospectus indicates significant losses in 2025, amounting to $42 billion, despite a 12-fold increase in revenue. Its IPO is expected to value the company at approximately $2 trillion, according to Reuters.