Anthropic Secures $63 Billion Broadcom Deal

Anthropic's financing plan hinges on a $63 billion equipment deal with Broadcom, where the chipmaker will cover up to $43 billion of losses if the AI startup defaults. The company's IPO filing shows it has pledged $895.4 billion in data-center spending through 2045, a figure that has already squeezed margins as compute costs rise. Broadcom, Google and AMD are all backing the purchases, with a new vehicle financed by Bank of America, Citi, Morgan Stanley and Blackstone set to lease the chips to Anthropic starting in 2027. If Anthropic can't pay rent, Broadcom will pay the gap between 72.5 % of the owed amount and the equipment's resale value - for example $12.5 million on a $100 million shortfall. Convertible notes up to $42 billion carry 9 % interest and convert at a 90 % discount, but jump to 13 % and an 85 % conversion rate if revenue targets miss. As Dario Amodei warns, a few years' timing error could be ruinous, and the risk now sits on the backs of the chip suppliers and their financiers.