WSJ says Anthropic's $63 billion chip financing was finalized after weekend negotiations by Broadcom's CEO
The Wall Street Journal reports that Anthropic's $63 billion chip financing was completed only after Broadcom CEO Hock Tan negotiated with bank executives over the weekend and agreed to raise the loan interest rate. Anthropic needs the money to lease chips rather than buy them directly: a shell company borrows from banks and Blackstone to buy the chips, then repays the loan using Anthropic's lease payments. Because lenders were wary of betting on a single startup, Broadcom, the seller of the chips, committed to assuming most of the loan if Anthropic stops paying.
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WSJ: Anthropic’s $63B chip financing closed only after Broadcom CEO Hock Tan negotiated with bank executives over a weekend and agreed to higher interest rates on the loans.
Anthropic needed $63B to lease chips it can’t afford to buy outright, so a shell company borrowed that money from banks and Blackstone, will buy the chips, and will repay the loans from Anthropic’s rent payments.
Because lenders were nervous about lending against a startup alone, Broadcom (which sells the chips) promised to cover most of the loans if Anthropic stops paying, and agreed to higher interest rates to get the deal signed.