The Pulse
Broadcom Agrees to Lend Anthropic Up to $42 Billion for Chip Leases
Broadcom has agreed to provide Anthropic up to $42 billion through convertible notes tied to chip leases, according to Anthropic’s IPO prospectus as reported by Reuters. Broadcom’s own quarterly filing describes the notes but does not name
AI.info Team · Written with AI ·
Broadcom has agreed to lend Anthropic up to $42 billion to finance infrastructure spending, according to Anthropic’s IPO prospectus as reported by Reuters on Thursday. The relationship described in the document gives the chipmaker three roles in the AI lab’s buildout: compute supply, equipment leasing and financing.
The $42 billion is a ceiling, not money already lent. Broadcom’s quarterly report for the period ended August 2, 2026, filed with the U.S. Securities and Exchange Commission in September, describes notes of the same size without naming the customer:
In connection with lease agreements that enable access to compute capacity, our customer may, under certain circumstances and if needed, issue to us convertible promissory notes up to an aggregate principal amount of $42 billion.
Broadcom Inc., quarterly report on Form 10-Q for the quarter ended August 2, 2026
The same filing says the notes are subject to conditions, including that the notes or any proceeds be used solely for the customer’s obligations under the lease agreements. No notes had been issued to Broadcom as of August 2.
A third of a $125.2 billion TPU lease
The convertible notes could finance about a third of the $125.2 billion commitment Anthropic has made for a five-year lease of tensor processing unit (TPU) computing capacity, Reuters reported. Google and Broadcom have collaborated on several generations of TPUs. In April, Anthropic announced an expanded partnership with both companies for multiple gigawatts of next-generation TPU capacity expected to come online starting in 2027.
Anthropic does not expect any notes to be sold before it completes its IPO, according to the prospectus. Broadcom could designate a financing partner, and the notes could be converted into Anthropic shares. Anthropic also said it deposited cash into a restricted account for Broadcom’s benefit in April 2026 and may be required to contribute additional amounts in certain circumstances.
Supplier and lender at once
Anthropic disclosed that Broadcom’s role in supplying hardware and acting as a financing partner creates “potential conflicts of interest” that might affect the lab’s access to the computing power it needs, Reuters reported. The company also warned that Broadcom’s decisions on pricing and hardware could affect its ability to procure enough computing infrastructure.
A further risk sits in the leases themselves. According to the prospectus, certain payment or performance defaults could make a substantial portion of Anthropic’s lease obligations immediately due, while limiting its ability to use the $42 billion facility to cover those payments.
Broadcom’s largest compute customer in 2027
Anthropic is expected to become Broadcom’s largest compute customer in 2027, Reuters reported. Broadcom has projected AI semiconductor revenue of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028.
“It feels that there's quite a concentrated bet right now on two companies being able to generate enough revenues to support all the financing that's happened,” Robert Leitão, managing partner of Rothschild & Co, told Reuters.
The arrangement follows what rival Nvidia has done in recent years, using its financial strength to help boost chip sales, Reuters noted. “Nvidia is putting in place a massive amount of its balance sheet, and Broadcom is having to follow suit,” Seaport Research analyst Jay Goldberg said.
Broadcom did not comment to Reuters, and Anthropic declined to comment. Anthropic’s first capacity under the April TPU agreement is expected to come online in 2027.