Broadcom to provide up to $42 billion in loans to Anthropic
Chipmaker Broadcom has agreed to lend AI startup Anthropic up to $42 billion to fund infrastructure costs. In return, Anthropic is expected to become Broadcom's largest chip design customer next year.
Broadcom has agreed to provide up to $42 billion in loans to artificial intelligence company Anthropic, according to documents filed for Anthropic's initial public offering. The funding is intended to support Anthropic's infrastructure expenses, including leasing computing power and equipment from Broadcom.
As part of the deal, Anthropic is projected to become the largest customer for Broadcom's core chip design business in the coming year. This arrangement has drawn scrutiny from some on Wall Street, who have described it as a form of "loop deal" or "reciprocal investment spending" as Anthropic prepares for a potential IPO that could value it at $2 trillion.
The structure of the agreement mirrors strategies employed by competitors like Nvidia, which has leveraged its balance sheet to drive chip sales. "Nvidia is using its balance sheet at scale to leverage the market, and Broadcom now has to follow suit," said Jay Goldberg, an analyst at Seaport Research.
Anthropic itself acknowledged in its regulatory filings that Broadcom's dual role as both a hardware supplier and financing partner presents a "potential conflict of interest." The AI company warned that Broadcom's decisions on chip pricing and hardware strategy could negatively impact its ability to secure necessary computing infrastructure.