Broadcom lends Anthropic up to $42 billion for artificial intelligence chips

As revealed in the IPO prospectus of the artificial intelligence laboratory Anthropic, Broadcom has agreed to lend it up to $42 billion to finance infrastructure spending, Reuters reports. The relationship between the two companies includes the supply of computing capacity, equipment leasing and financing.

According to Reuters, Anthropic is expected to become the largest customer of Broadcom’s chip design business next year — a typical example of the “reciprocal spending” that has inspired AI sceptics on Wall Street, as Anthropic prepares an initial public offering that could value the company at $2 trillion.

The convertible note could finance around a third of the $125.2 billion commitment Anthropic has taken on for a five-year lease of TPU computing capacity. In the prospectus, Anthropic also discloses potential conflicts of interest relating to Broadcom’s dual role as equipment supplier and financing partner.

“It seems to be becoming a rather concentrated bet on two companies that must generate enough revenue to support all the financing that has been done,” Rothschild & Co’s Robert Leitao is quoted as saying. According to Seaport Research analyst Jay Goldberg, Broadcom’s financing follows the model Nvidia used in recent years.

Broadcom forecasts artificial intelligence semiconductor revenue of around $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Reuters notes that Broadcom did not comment, while Anthropic declined to comment.