A Wall Street syndicate has launched a record $60 billion AI debt financing round to fund Anthropic's chip leasing.
44 minutes ago
According to a report by the Financial Times, Bank of America, Citigroup, and Morgan Stanley began on Monday to distribute portions of a $60 billion debt financing deal to other banks. The financing is intended to support Anthropic’s lease of Google chips and access to AI computing power, marking a record scale for a chip financing transaction. The three banks had previously committed to funding the deal. The financing package includes approximately $42 billion in senior secured loans backed by Broadcom, with syndication distribution now underway. Leveraging Broadcom’s A-level credit rating, this portion of debt could later be sold via private placements or investment-grade bond markets. Another $18 billion in subordinated debt not backed by Broadcom will be rolled out later, with BlackRock having committed to funding roughly $9 billion of that amount. The funds will be used for Anthropic’s 2027 chip orders, with lease payments set to commence after chip delivery. As subordinated debt lenders will directly bear Anthropic’s credit risk, banks may wait until after Anthropic’s planned initial public offering (IPO) before marketing the deal to investors to provide them with more financial disclosures. The deal is seen as a key indicator of market demand for AI-related debt financing.
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