Broadcom to Provide Up to $42 Billion in Financing to Anthropic for AI Chips

Broadcom (AVGO) is reportedly providing up to $42 billion in financing to AI developer Anthropic to lease its AI chips. According to Anthropic's IPO filing, the company is projected to become Broadcom's largest compute customer by 2027. The agreement includes provisions for a potential financing partner and the conversion of notes into equity, though no sales are expected before the IPO. This deal follows Anthropic's previous collaboration with Broadcom and Google to secure Tensor Processing Unit capacity, which is scheduled to come online in 2027.