Apollo Global Management Inc. and Blackstone Inc. have finalized a $35 billion financing package for Anthropic PBC to expand its AI infrastructure. This deal marks a significant expansion in the chip-financing market, as tech companies look for novel ways to fund the heavy capital requirements of data center construction and specialized hardware. The capital is specifically earmarked to fund custom Google chips which Anthropic will then lease. Broadcom Inc. is backstopping payments on the largest senior portions of the debt to mitigate risk for investors, while Morgan Stanley served as the advisor for the transaction. Roughly half of the $35 billion was syndicated to external investors. The deal follows Anthropic’s confidential US IPO filing and a recent funding round that raised $65 billion, placing the company's total valuation at $965 billion.

Broadcom is developing the AI XPV platform in collaboration with Apollo and Blackstone to deploy over 20 gigawatts of compute capacity through 2028. The deal structure uses a special-purpose vehicle (SPV) that raises capital through debt and equity to buy chips, which are subsequently leased to the customer. This arrangement is supported by a residual value support agreement, where Broadcom guarantees coverage for potential shortfalls on A1 and A2 notes if lease payments fail.

The $35 billion facility is divided into three tranches. The $6 billion A1 notes were sold to banks at a coupon of 1 percentage point over Treasuries, while the $24 billion A2 notes carry a 5.75% coupon and were purchased by institutional investors, including Apollo’s Athene insurance arm. The $4.5 billion B notes, which lack Broadcom backing, carry an 8.5% coupon. Additionally, Apollo’s Atlas SP Partners provided $800 million in equity, serving as the owner of the SPV. This structure follows a similar arrangement previously used for Meta Platforms Inc.’s Hyperion facility.

Apollo Global Management Inc. and Blackstone Inc. have finalized a $35 billion financing package for Anthropic PBC to expand its AI infrastructure. This deal marks a significant expansion in the chip-financing market, as tech companies look for novel ways to fund the heavy capital requirements of data center construction and specialized hardware. The capital is specifically earmarked to fund custom Google chips which Anthropic will then lease. Broadcom Inc. is backstopping payments on the largest senior portions of the debt to mitigate risk for investors, while Morgan Stanley served as the advisor for the transaction. Roughly half of the $35 billion was syndicated to external investors. The deal follows Anthropic’s confidential US IPO filing and a recent funding round that raised $65 billion, placing the company's total valuation at $965 billion.

Broadcom is developing the AI XPV platform in collaboration with Apollo and Blackstone to deploy over 20 gigawatts of compute capacity through 2028. The deal structure uses a special-purpose vehicle (SPV) that raises capital through debt and equity to buy chips, which are subsequently leased to the customer. This arrangement is supported by a residual value support agreement, where Broadcom guarantees coverage for potential shortfalls on A1 and A2 notes if lease payments fail.

The $35 billion facility is divided into three tranches. The $6 billion A1 notes were sold to banks at a coupon of 1 percentage point over Treasuries, while the $24 billion A2 notes carry a 5.75% coupon and were purchased by institutional investors, including Apollo’s Athene insurance arm. The $4.5 billion B notes, which lack Broadcom backing, carry an 8.5% coupon. Additionally, Apollo’s Atlas SP Partners provided $800 million in equity, serving as the owner of the SPV. This structure follows a similar arrangement previously used for Meta Platforms Inc.’s Hyperion facility.