Broadcom and Blackstone jointly raised $60 billion to pave the way for computing power for AI companies like Anthropic.

Broadcom is leading a $60 billion debt financing deal to fund AI companies like Anthropic’s chip purchases and data center construction, making it one of the largest debt financing deals in the AI chip sector.

On October 2, Bloomberg, citing sources familiar with the matter, reported that Broadcom is working with Wall Street banks to finalize the financing, which includes $42 billion in Class A senior secured bonds to be issued and distributed to investors by a syndicate of banks; and $18 billion in Class B subordinated debt led by Blackstone Group.

This funding round has been in the works for weeks but has not yet been officially announced. The deal comes at a time when the AI infrastructure investment boom is facing market scrutiny, with public backlash against data center construction continuing to intensify. Wall Street and Silicon Valley are closely watching whether investors' demand for funding for AI expansion can be sustained.

Dual-track approach of senior and subordinated debt

This financing is divided into two tiers. The $42 billion in Class A senior secured bonds will be distributed through a Wall Street syndicate organized by Broadcom, while the $18 billion in Class B subordinated debt will be led by Blackstone, with $9 billion of its own funds used as an anchor investment, and the remainder raised from external syndicate investors.

This funding will help AI companies like Anthropic acquire chips and other critical infrastructure resources, and is the latest example of the recent surge in AI infrastructure debt financing. Currently, debt financing for AI infrastructure construction has reached hundreds of billions of dollars, with the majority flowing to data centers, and financing deals for equipment such as chips and servers are also increasing.

In August of this year, Nvidia announced a partnership with six major financial institutions, including Blackstone, to mobilize over $500 billion to support the AI industry, including helping customers finance the purchase of Nvidia chips. Broadcom's move to pursue a similar financing arrangement further expands the channels for financial capital to enter the AI chip and data center equipment sectors.

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