AI fundraising reaches massive scale! Wall Street "displays financial prowess," investors respond enthusiastically
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The wave of AI infrastructure development is fueling an unprecedented global fundraising frenzy. From equity issuance to bond markets, from traditional bank loans to private credit special purpose vehicles, capital is pouring into this sector in every conceivable form.
On June 9, Wallstreetcn mentioned that Broadcom teamed up with Apollo and Blackstone to set up an AI financing platform, with its first transaction landing at $35 billion. Anthropic became the first major client, and this deal is considered one of the largest private credit SPV (special purpose vehicle) deals to date.
Meanwhile, AI server manufacturer Super Micro Computer announced plans to raise $7 billion through a package of equity offerings, to purchase components and fulfill existing orders. After the announcement, its stock price dropped as much as 9% in after-hours trading.
Both deals reflect the same reality: the demand for capital in the AI computing power arms race far exceeds the boundaries traditional financing channels can bear, and Wall Street is accelerating innovation in financing structures.
According to Dealogic, AI hyperscalers such as Alphabet, Amazon, Meta, and Microsoft have already issued $159 billion in bonds globally this year, far exceeding last year's total of $108 billion, and more than nine times the $17 billion issued in 2024.
Broadcom Backs $35 Billion SPV: Complex Structure, Interwoven Cycles
The core of Anthropic's financing deal is a precisely designed structured financing arrangement.
The SPV, established by Apollo's Atlas SP Partners, raises funds through a mix of debt and equity, using the proceeds to purchase TPU chips jointly developed and manufactured by Broadcom and Google, which are then leased to Anthropic. The SPV's debt is mainly repaid from lease payments.
The $35 billion debt is structured in three tiers:
$6 billion A1 senior notes sold to banks, with an interest rate 1 percentage point above the base government bond rate;$24 billion A2 senior notes sold to asset-backed credit market institutional investors at a yield of 5.75%. Buyers include Apollo's Athene insurance subsidiary and other institutions favoring high-rated debt assets;The remaining $4.5 billion subordinated debt has no Broadcom guarantee, carries an interest rate of 8.5%, and is issued at an original discount of 98 to 99 cents on the dollar.
Additionally, Atlas SP Partners provides $800 million in equity, making it the actual owner of the SPV.
The key credit enhancement mechanism in the deal is Broadcom's "residual value support" agreement.
If Anthropic fails to pay rent within a certain period, the SPV can sell the chips to repay debt investors. If the chips' liquidation value is insufficient to cover the principal, Broadcom will fully cover the difference for A1 and A2 investors.
This backstop arrangement enables the senior debt tranches to receive private investment-grade ratings close to Broadcom's own, significantly reducing financing costs.
The cyclical relationships within the transaction are notable:
Google holds approximately 14% of Anthropic's equity and is also Broadcom's partner in manufacturing TPU chips;Anthropic will use this financing to buy chips co-developed by Broadcom and Google;Broadcom provides credit support for the entire deal.
Broadcom CEO Hock Tan stated that the company aims to connect "investment partners with strong balance sheets" to adequate computing power supply, and hinted that similar deals will materialize in succession.
AI Equity Financing: Google $85 Billion, Super Micro $7 Billion, Scale Sets Records
Outside the debt market, AI equity fundraising is also surging.
Alphabet announced plans to raise $85 billion through equity issuance, one of the largest AI equity fundraising cases recently. The deal was finalized days after Anthropic's $35 billion private credit deal.
Reportedly, SpaceX is preparing for an IPO that may raise as much as $86 billion; Anthropic has recently submitted a secret IPO application; OpenAI and Anthropic have each accumulated over $100 billion in venture capital funding.
Multiple forecasts show that this year could be the biggest fundraising year in IPO history.
Super Micro's $7 billion equity financing plan also reflects the urgent capital needs of midstream AI industry chain players.
The company claims to have around $39 billion in backlogged orders. This round of financing will mainly be used to purchase components to ensure deliveries.
Specific structure includes $1.25 billion in common stock issuance, $3.75 billion in mandatory convertible preferred stock depositary receipts, and a $2 billion at-the-market (ATM) issuance plan, expected to launch as early as the third quarter, with joint lead underwriters JPMorgan, Goldman Sachs and Citi.
Hyperscale Enterprise Bond Issuance Goes Global
The vast capital demand for AI computing power is driving tech giants to extend bond issuance into markets worldwide.
According to Dealogic, just five companies—Alphabet, Amazon, Meta, Microsoft and Oracle—have issued $159 billion in bonds globally this year.
Alphabet has issued bonds in USD, CAD, JPY, EUR, CHF, and GBP, including a rare 100-year GBP bond. Public filings also show plans to raise $1 billion in California municipal bonds for energy projects.
Amazon completed its largest-ever CAD bond issuance this Monday, raising 14 billion CAD (about $10 billion). Previously, it issued bonds in USD, EUR, and CHF markets.
In terms of pricing, Alphabet, Amazon, and Microsoft 10-year bonds have credit spreads versus US Treasuries that remain below average investment-grade corporate bonds. Meta’s bond spreads are slightly higher than average.
By contrast, Oracle has issued a cumulative $43 billion in bonds since September last year and is expected to continue burning cash in future years. Its bonds trade closer to the highest tier in speculative-grade debt, though its official rating remains investment-grade.
CreditSights senior analyst Jordan Chalfin remarked:
The risk of overbuilding has not disappeared, and this risk is reflected in the credit spreads of hyperscale enterprise bonds.
Wealth Enhancement senior investment strategist Ayako Yoshioka admitted that AI infrastructure may eventually experience overbuilding, and stock prices could fall at that point. She added:
There is still an investment window at present, because the scale of this construction wave is simply enormous.
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