Anthropic's $63B Chip Financing Closes After Broadcom Backstop
Anthropic closed a $63 billion chip financing deal after Broadcom CEO Hock Tan negotiated with banks over the weekend. To alleviate lender concerns about a startup borrower, Broadcom agreed to backstop most of the loans if Anthropic defaults and accepted higher interest rates.
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WSJ: Anthropic’s $63B chip financing closed only after Broadcom CEO Hock Tan negotiated with bank executives over a weekend and agreed to higher interest rates on the loans.
Anthropic needed $63B to lease chips it can’t afford to buy outright, so a shell company borrowed that money from banks and Blackstone, will buy the chips, and will repay the loans from Anthropic’s rent payments.
Because lenders were nervous about lending against a startup alone, Broadcom (which sells the chips) promised to cover most of the loans if Anthropic stops paying, and agreed to higher interest rates to get the deal signed.
