Broadcom just arranged a $63 billion financing deal with Bank of America, Blackstone, Citi and Morgan Stanley to fund AI chip purchases…

Broadcom just arranged a $63 billion financing deal with Bank of America, Blackstone, Citi and Morgan Stanley to fund AI chip purchases for Anthropic. A newly formed SPV uses the committed financing to buy Broadcom's XPU accelerators and networking gear, then leases that equipment to Anthropic, with deliveries expected to begin in 2027.

The layers are what caught my attention. Bank of America, Citi and Morgan Stanley are arranging the first lien. Blackstone is the sole provider of the committed second lien. Broadcom itself provides residual value support for an amount equivalent to the first-lien financing, which Reuters' sources put at about $43.5 billion, roughly 69% of the total.

According to WSJ reporting, some banks grew anxious over several weeks about the deal, internally called Project North Star. Rising rates and the difficulty of financing AI ventures left lenders feeling undercompensated, and some considered walking away. Per that reporting, Hock Tan held late-stage weekend talks and agreed to higher interest rates and stronger protections for lenders.

Baird reiterated an outperform rating on $AVGO with a $630 target, citing both the growth opportunity and the financial risks. D.A. Davidson upgraded it to Buy with a $400 target, pointing to Anthropic's S-1.

I've been circling this question since the SpaceX SPV and Anthropic's S-1 flagging compute concentration risk. If these chips can't be redeployed, or Anthropic's growth disappoints, who takes the loss?

Based on how this was structured, a meaningful share of the equipment-value risk sits with Broadcom, supporting the financing behind its own sale. So far investors are pricing it as upside: the stock closed up 4.0% at $342.33 today after touching +5.0%, with the upgrade and S-1 in the mix too.

Sources:
Reuters: https://www.reuters.com/legal/transactional/wall-street-banks-blackstone-line-up-63-billion-finance-broadcom-chips-anthropic-2026-10-26/
Bloomberg: https://finance.yahoo.com/technology/ai/articles/broadcom-arranges-63-billion-deal-203614048.html
Yahoo Finance/Benzinga: https://finance.yahoo.com/technology/ai/articles/banks-reportedly-got-cold-feet-032746843.html

Not financial advice. For informational and educational purposes only.