Broadcom to lend Anthropic up to $42 billion to lease its chips, filing says | Reuters

Summary Companies Facility could finance about one-third of Anthropic's $125.2 billion five-year TPU lease commitment Broadcom could convert debt instruments into Anthropic equity Anthropic says Broadcom relationship creates potential conflicts of interest over AI infrastructure access NEW YORK/SAN FRANCISCO, Oct 1 (Reuters) - Anthropic’s IPO ​prospectus documents extensive partnerships with a handful of big tech firms . One stands out: chip maker Broadcom (AVGO.O) , opens new tab . The company's relationship with ‌Anthropic spans compute supply, equipment leasing and financing -- giving the semiconductor company a central role in Anthropic's infrastructure buildout. That differentiates it from other major partners and investors such as Amazon (AMZN.O) , opens new tab , which primarily provide cloud infrastructure and distribution for Anthropic's model Claude. Sign up here. As part of that complex relationship, revealed in the IPO filing, ​Broadcom has agreed to lend Anthropic up to $42 billion to finance infrastructure spending. In turn, Anthropic stands to become the largest ​customer in Broadcom’s bread-and-butter chip design business next year, making their relationship a prime example of the ⁠reciprocal spending that has animated AI skeptics on Wall Street, even as the AI lab readies a public offering that could see ​it valued at $2 trillion. "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," said Robert Leitao, managing partner of Rothschild & Co. As part of the financing arrangement, Broadcom could designate a financing partner, and the debt instruments could be converted into Anthropic shares. Anthropic said in its filing it doesn't expect any notes to be sold before it completes its IPO. The convertible ​note Anthropic would issue could finance about a third of the $125.2 billion commitment the AI lab has made for a five-year lease of ​tensor processing unit (TPU) computing capacity. Alphabet's (GOOGL.O) , opens new tab Google and Broadcom have collaborated on several generations of the TPUs. Anthropic announced in April an expanded partnership with Broadcom ‌and ⁠Google that will give it access to multiple gigawatts of next-generation TPU compute capacity beginning in 2027. Item 1 of 2 A Broadcom sign is pictured in San Jose, California, U.S., September 5, 2025. REUTERS/Brittany Hosea-Small [1/2] A Broadcom sign is pictured in San Jose, California, U.S., September 5, 2025. REUTERS/Brittany Hosea-Small Purchase Licensing Rights , opens new tab For Broadcom, the financing arrangement follows what rival Nvidia (NVDA.O) , opens new tab has done in recent years -- use its strong financial position to help boost chip sales. "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. POTENTIAL CONFLICTS OF INTEREST Anthropic disclosed that ​Broadcom's role in supplying hardware ​and acting as a financing ⁠partner creates "potential conflicts of interest" that might affect Anthropic's ability to access the computing power needed for its work, according to the prospectus. The AI lab also warned that Broadcom's decisions around pricing and hardware ​could affect its ability to procure enough computing infrastructure. Broadcom did not comment. Anthropic declined to comment. Related ​to the convertible ⁠debt, Anthropic 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, according to the filing. The company warned that certain payment or performance defaults could make a substantial portion of its lease obligations ⁠immediately due ​while limiting its ability to use the $42 billion financing facility to cover those ​payments. Meanwhile, Anthropic is expected to become Broadcom's largest compute customer in 2027. Broadcom projects AI semiconductor revenue of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Reporting ​by Echo Wang and Milana Vinn in New York and Max A. Cherney in San Francisco, Editing by Colin Barr and David Gaffen Our Standards: The Thomson Reuters Trust Principles. , opens new tab X Facebook Linkedin Email Link Purchase Licensing Rights Echo Wang Thomson Reuters Echo Wang runs coverage of corporate dealmaking across the U.S. for Reuters, leading a team that breaks market-moving news on the biggest deals in corporate America. Her own reporting spans M&A, IPOs and enterprise investigations, and was the first to report exclusives on some of the largest initial public offerings on record, including 2026's SpaceX and Anthropic, as well as major transactions such as SpaceX’s acquisition of xAI. She has also led Reuters’s coverage of deals involving TikTok and Grindr, and investigations into the financing behind Truth Social. Echo began her career as a travel writer for Lonely Planet and has worked on NPR’s The Indicator podcast, Frankfurter Allgemeine Zeitung, and Le Monde. She joined Reuters in 2019 as an Overseas Press Club Foundation Fellow after completing her master's degree at Columbia Journalism School. Email X Linkedin Milana Vinn Thomson Reuters Milana Vinn reports on technology, media, and telecom (TMT) mergers and acquisitions. Her content usually appears in the markets and deals sections of the website. Milana previously worked at GLG and PE Hub, where she spent several years covering TMT deals in private equity. She graduated from CUNY Graduate School of Journalism with Masters in Business Journalism. Email X Linkedin Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron’s magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history. Email X Instagram Linkedin Read Next ago Legal category Nvidia's bet that its chips can finance the AI boom gets a Wall Street reality check September 29, 2026 Business category EXCLUSIVE Anthropic's IPO prospectus shows sweeping AI vision, surging costs ago EXCLUSIVE French supercomputer maker Bull doubles output to boost Europe's AI ambitions ago Legal category Chinese hackers impersonated ex-US official to steal emails from AI experts ago Artificial Intelligence category NEWSLETTER Anthropic's secret IPO filing: A Q&A with the reporter who broke the story