Broadcom Agrees to Lend Anthropic Up to 42 Billion Dollars for AI Compute Expansion

Broadcom has agreed to provide AI company Anthropic with up to $42 billion in financing to support a major expansion of its computing infrastructure, according to details disclosed in Anthropic's IPO prospectus in October 2026.

The financing covers approximately one-third of Anthropic's $125.2 billion, five-year commitment for tensor processing unit computing capacity. Under the agreement, Broadcom acts as chip supplier, equipment lessor, and lender, with debt instruments that are convertible into equity.

By 2027, Anthropic is projected to become Broadcom's largest compute customer. The deal is part of a broader partnership that also includes Google, which is providing Anthropic with access to next-generation TPU capacity beginning in 2027.

Broadcom has forecasted its AI semiconductor revenue to reach approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028, with Anthropic expected to be a major driver of that growth.

Market analysts have raised questions about the "circular financing" structure of the deal, noting that Broadcom acts as both the hardware supplier and the lender. Anthropic's prospectus acknowledged potential conflicts of interest, noting that Broadcom's decisions on pricing or hardware availability could affect Anthropic's operations.

The deal follows a separate $35 billion financing tranche established in June 2026 by Broadcom in partnership with Apollo Global Management and Blackstone to support earlier chip installations.

Anthropic said it does not expect to sell the convertible notes before completing its IPO.