Chip giant Broadcom has reached a $63 billion financing deal with Bank of America, Blackstone, Citibank, and Morgan Stanley to supply chips to AI model developer Anthropic. According to a joint statement issued on Monday, the deal will be completed through a newly established special purpose carrier, and Bank of America, Blackstone, Citibank, and Morgan Stanley will provide financing to buy Broadcom chips and rent them out to Anthropic. Broadcom, on the other hand, will guarantee part of the financing through so-called “residual value support.” The financing deal was closely watched by Wall Street and Silicon Valley professionals. As concerns about the AI bubble intensify, the market hopes to confirm from this deal whether investors are still willing to fund the expansion of AI infrastructure. Broadcom wants to expand sales of chips and other data center equipment to compete with Nvidia.

Chip giant Broadcom has reached a $63 billion financing deal with Bank of America, Blackstone, Citibank, and Morgan Stanley to supply chips to AI model developer Anthropic. According to a joint statement issued on Monday, the deal will be completed through a newly established special purpose carrier, and Bank of America, Blackstone, Citibank, and Morgan Stanley will provide financing to buy Broadcom chips and rent them out to Anthropic. Broadcom, on the other hand, will guarantee part of the financing through so-called “residual value support.” The financing deal was closely watched by Wall Street and Silicon Valley professionals. As concerns about the AI bubble intensify, the market hopes to confirm from this deal whether investors are still willing to fund the expansion of AI infrastructure. Broadcom wants to expand sales of chips and other data center equipment to compete with Nvidia.