$63 billion financing opens path for Anthropic to expand computing through Broadcom
Key Facts
Bank of America, Blackstone, Citi and Morgan Stanley announced a $63 billion financing deal on October 26, 2026, to enable the deployment of AI computing capacity for Anthropic using Broadcom technology. The structure will finance the purchase of accelerators and networking solutions and lease them to the company, linking Anthropic’s expansion to direct demand for Broadcom equipment. The deal is being carried out through a newly formed special-purpose vehicle, which has committed financing to purchase the equipment. Broadcom Chief Executive Hock Tan said demand for AI computing "continues to grow at an extraordinary pace." He added that the deal "demonstrates the availability of capital to finance this growth."
The financing is divided into two credit tranches, though the announcement did not disclose their separate sizes. Bank of America, Citi and Morgan Stanley are arranging the first-lien tranche, while Blackstone alone is providing the committed portion of the second-lien tranche. That puts the three banks in the first-priority financing arrangement, with Blackstone taking on the announced commitment in the second tranche. Broadcom is also providing residual value support for the special-purpose vehicle, equivalent to the value of the first-lien tranche. The structure gives the equipment supplier a financing role alongside its role in providing accelerators and networking solutions.
Blackstone President and Chief Operating Officer Jon Gray said growing demand for AI is creating "a massive opportunity to finance computing capacity at scale." The financing comes as markets track the sector’s ability to fund the infrastructure needed to expand its services. The Associated Press reported that investors are monitoring the impact of rising borrowing costs for companies building data centers and buying more AI chips. AI-related stocks have remained volatile amid those concerns. The deal structure turns spending on computing equipment into structured financing through an asset company that leases it to the end user.
The market rebound in Monday’s October 26 session lifted U.S. stock indexes, with the Nasdaq Composite gaining 214.04 points, or 0.8%, to 26,169.38. The S&P 500 rose 0.7%, bringing it to within 1.8% of its record high set earlier in the month. Nvidia shares also gained 2.4%, recovering some losses after three consecutive weeks of declines, their longest such streak since June. The yield on two-year U.S. Treasury notes rose to 4.71%, from 4.69% late the previous Friday. Investors were also awaiting the Federal Reserve meeting scheduled for October 27 and 28.
The Federal Reserve raised its target interest-rate range by a quarter percentage point to 3.75%–4% on September 16, in a decision approved by the committee in a 12-to-zero vote. The committee said at the time that economic activity was expanding at a solid pace and inflation remained elevated. Against the backdrop of the capital expansion, the Associated Press reported that Anthropic disclosed details of its losses as it prepared for its first public stock offering in the United States, without specifying a date for the offering. The company recorded revenue of $16.3 billion and net losses of $80.7 billion in the first half of 2026. The losses included a one-time accounting adjustment of $72.4 billion linked to financing agreements.
Anthropic said in its filing that plans to build computing capacity and infrastructure "change the profile of our cash flow" and will mean high capital expenditures. Those stated costs align with the new deal’s reliance on financing and equipment-leasing arrangements instead of a direct purchase by the beneficiary company. The $63 billion agreement is part of a previously announced Broadcom deal concerning strategic computing capacity. Deliveries are expected to begin in calendar year 2027. The delivery schedule puts the expansion after the announcement, while investors’ near-term focus turns to the Federal Reserve meeting on October 27 and 28.