BofA, Blackstone, Citi, and Morgan Stanley Announce $63 Billion Financing for Anthropic's Broadcom Chips with Vendor Residual Value Support
Bank of America, Blackstone, Citi, and Morgan Stanley have jointly announced a $63 billion financing plan through a Special Purpose Vehicle (SPV) to purchase Broadcom AI chips for lease to Anthropic. Broadcom provides residual value support equal to the first-lien loan amount, with deliveries starting in 2027. This deal highlights a new model where chipmaker credit backs bank capital to solve AI compute funding bottlenecks.
Bank of America, Blackstone, Citi, and Morgan Stanley released a joint press release on October 26, 2026 (US Eastern Time), announcing the arrangement of a $63 billion financing package. The plan involves a newly formed Special Purpose Vehicle (SPV) purchasing Broadcom XPU AI accelerators and networking products to lease to artificial intelligence laboratory Anthropic. Chip deliveries are expected to begin in 2027.
In this transaction, Bank of America, Citi, and Morgan Stanley are arranging the first-lien financing, while Blackstone is the sole provider of the committed second-lien financing. Reuters, citing two people familiar with the matter, reported that the first-lien debt amounts to approximately $43.5 billion, representing 69% of the total financing, though the official press release did not disclose the specific breakdown.
A key risk-sharing mechanism lies in Broadcom's involvement. Beyond acting as the chip supplier, Broadcom provides "residual value support" to the SPV, equal to the amount of the first-lien financing. This means Broadcom will cover any shortfall if the future market value of the AI racks falls below expectations. In its subsequent 8-K filing, Broadcom disclosed that the potential liability cap for this guarantee is approximately $43 billion, describing it as a "low probability" contingent liability. The guaranteed amount increases as racks are deployed and decreases as Anthropic pays rent.
On the same day, Anthropic publicly filed its S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). The S-1 document shows that Anthropic generated $16.3 billion in revenue in the first half of 2026 but suffered a net loss of $80.7 billion, largely due to accounting charges from fair value changes in financial instruments. Operating income turned positive in the second quarter at $974 million.