Apollo and Blackstone have finalized a $35 billion private credit deal, known as project "Big Sky," to finance Anthropic’s growth and the purchase of chips developed by Google and manufactured by Broadcom. This transaction represents one of the largest private credit deals completed to date and utilizes a special-purpose vehicle (SPV) to secure funding through a mix of debt and equity. The structure involves three tranches of debt, with Broadcom providing a residual value support agreement to backstop the interest payments.

The $35 billion facility includes $6 billion in A1 notes, which were sold to banks at an interest rate of 1% over Treasuries, and $24 billion in A2 notes sold to institutional investors at a yield of 5.75%. An additional $4.5 billion in junior debt carries an interest rate of 8.5% and lacks Broadcom's guarantee, resulting in a higher cost of capital. Apollo’s Atlas SP Partners provided $800 million in equity to the SPV, effectively owning the entity. The deal is structured so that the chips serve as collateral, and if Anthropic fails to meet lease obligations, the SPV may sell the hardware to repay debt holders.

This financing comes as the AI sector faces significant capital demands, with Morgan Stanley estimating that AI-related debt could reach $400 billion, potentially rising to over $1 trillion through 2028. The deal follows a broader trend of large, complex off-balance sheet financings, similar to a $27.3 billion SPV deal involving Meta earlier in 2026. Despite the scale of the "Big Sky" transaction, some investors raised concerns regarding the lack of early access to Anthropic's financials and the structure of the delayed-draw debt, which can impact yields over time. Anthropic has also confidentially filed for an IPO following its $65 billion private financing round.

Apollo and Blackstone have finalized a $35 billion private credit deal, known as project "Big Sky," to finance Anthropic’s growth and the purchase of chips developed by Google and manufactured by Broadcom. This transaction represents one of the largest private credit deals completed to date and utilizes a special-purpose vehicle (SPV) to secure funding through a mix of debt and equity. The structure involves three tranches of debt, with Broadcom providing a residual value support agreement to backstop the interest payments.

The $35 billion facility includes $6 billion in A1 notes, which were sold to banks at an interest rate of 1% over Treasuries, and $24 billion in A2 notes sold to institutional investors at a yield of 5.75%. An additional $4.5 billion in junior debt carries an interest rate of 8.5% and lacks Broadcom's guarantee, resulting in a higher cost of capital. Apollo’s Atlas SP Partners provided $800 million in equity to the SPV, effectively owning the entity. The deal is structured so that the chips serve as collateral, and if Anthropic fails to meet lease obligations, the SPV may sell the hardware to repay debt holders.

This financing comes as the AI sector faces significant capital demands, with Morgan Stanley estimating that AI-related debt could reach $400 billion, potentially rising to over $1 trillion through 2028. The deal follows a broader trend of large, complex off-balance sheet financings, similar to a $27.3 billion SPV deal involving Meta earlier in 2026. Despite the scale of the "Big Sky" transaction, some investors raised concerns regarding the lack of early access to Anthropic's financials and the structure of the delayed-draw debt, which can impact yields over time. Anthropic has also confidentially filed for an IPO following its $65 billion private financing round.