AI Firm Anthropic Seeks Over 10% Yield on Debt Financing Exceeding $60 Billion

AI firm Anthropic is in the process of securing a significant debt financing round, aiming for over $60 billion with an investor yield surpassing 10%. This move underscores the substantial capital required for AI infrastructure and the heightened risk premiums investors are demanding.

The financing package reportedly includes approximately $42 billion in senior debt, secured by semiconductor firm Broadcom, and $18 billion in subordinated debt. Blackstone funds are set to invest $9 billion in the subordinated notes at a 10% coupon, with the total return expected to be higher after accounting for discounts and fees.

This increased borrowing cost contrasts with a similar debt issuance four months prior, which offered an 8.5% yield. The higher rates reflect growing investor caution and the immense funding needs for AI computation power and the associated infrastructure, placing considerable financial pressure on tech companies.

Anthropic is also reportedly planning one of the largest initial public offerings (IPOs) in history. The company intends to go public as a Public Benefit Corporation (PBC), a legal structure requiring management to balance commercial returns with broader public interests. The company has consistently emphasized safety and the potential risks associated with its AI models.