Broadcom will lend Anthropic up to $42bn to lease its TPU chips, Reuters reports from Anthropic's IPO prospectus

Broadcom has agreed to lend Anthropic up to $42bn to pay for computing infrastructure, Reuters reported on 1 October in an exclusive based on Anthropic's IPO filing. The filing was not opened here, so the figures are Reuters' reading of it.

The financing is a convertible note: Broadcom can bring in a financing partner, and the debt could later become Anthropic shares. Anthropic said in the filing that it does not expect any notes to be sold before its IPO is completed, according to Reuters.

The note could fund about a third of Anthropic's $125.2bn commitment to lease TPU computing capacity over five years, Reuters reported. Google and Broadcom have collaborated on several generations of TPUs, Google's AI chips, Reuters noted.

Reuters said the filing calls Broadcom's double role, as hardware supplier and lender, a source of “potential conflicts of interest” that could affect Anthropic's access to computing power. It also warns that certain defaults could make much of the lease obligation due at once. Anthropic is expected to become Broadcom's largest compute customer in 2027, Reuters reported.

Broadcom did not comment and Anthropic declined to comment. The arrangement shows chip suppliers financing their own customers' purchases, one of the ways the AI build-out is now being paid for.

• Reported Broadcom will lend Anthropic up to $42bn in convertible financing, Reuters reported from the prospectus. Reuters via The Star
• Reported The note could cover about a third of a $125.2bn five-year TPU lease commitment, Reuters reported. Reuters via The Star
• Reported The filing flags “potential conflicts of interest” in Broadcom's role as supplier and lender, Reuters reported. Reuters via The Star