Broadcom’s $80B AI Debt Fuels Anthropic’s Computing Power

Broadcom is in discussions with lenders to raise between $70 billion and $80 billion in debt, potentially reaching $100 billion, aimed at significantly expanding its custom AI chip manufacturing capacity. This substantial financing is primarily intended to support artificial intelligence companies, with Anthropic emerging as a major beneficiary.

This massive capital infusion reflects the immense computing power demands of leading AI firms. The proposed debt structure underscores the scale of investment required in this rapidly evolving sector.

Key Financials Driving Expansion

• Broadcom’s AI semiconductor revenue hit $10.8 billion in its most recent quarter.
• This translates to an annualized run rate of nearly $43 billion.
• Company executives anticipate AI chip revenue could eventually surpass $100 billion annually.
• Anthropic’s Q2 revenue was $11.5 billion.
• Anthropic’s annualized run rate is projected to reach $65 billion by July.

The financing plan involves a senior tranche of approximately $45 billion and a junior tranche of around $35 billion. This debt would be issued through a special-purpose vehicle (SPV) to isolate it from Broadcom’s primary balance sheet. This approach highlights a strategic move to manage financial exposure while pursuing aggressive growth in the AI infrastructure space.

Strategic Partnerships and Market Positioning

This new financing builds upon a $35 billion partnership announced in June by Broadcom, Apollo, and Blackstone. That collaboration focused on expanding Anthropic’s computing infrastructure using Broadcom’s custom AI chips. Under this innovative arrangement, outside investors fund the necessary hardware and then lease it to Anthropic, allowing the AI company access to vast computing resources without significant upfront capital outlays.

Broadcom, Apollo, and Blackstone aim to achieve over 20 gigawatts of computing capacity for AI companies by 2028. This ambitious goal could necessitate hundreds of billions of dollars in total investment. Broadcom is solidifying its position as a critical player in the AI chip market, supplying custom application-specific integrated circuits (ASICs) to major clients.

• Major clients include: Alphabet, Meta, Anthropic, and OpenAI.
• This positions Broadcom alongside market leader Nvidia.
• Anthropic’s collaboration with Broadcom has deepened through expanded computing partnerships with Google.
• These partnerships involve the use of Google’s Tensor Processing Units (TPUs), which Broadcom helps design and manufacture.

The Broader AI Funding Landscape and Risks

The AI industry is increasingly relying on debt and external investment to fund its extensive infrastructure needs, including data centers and specialized AI chips. This trend reflects the capital-intensive nature of developing advanced AI models and the infrastructure to support them.

Anthropic, despite its rapid revenue growth, recorded a net loss of nearly $42 billion in 2025 due to substantial spending on computing power and AI model development. The company recently raised $65 billion at a $965 billion valuation and is reportedly preparing for an initial public offering (IPO). Broadcom’s shares saw a modest increase following these financing reports, reflecting strong long-term demand for computing power in the AI sector. However, analysts caution about the considerable risks associated with such large-scale borrowing, likening these deals to financing for major energy projects.