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Anthropic is attracting Blackstone Group to provide financing for its chip deal at a yield of more than 10%. According to an IT Home report, the total debt amounts to $60 billion, of which about $42 billion in senior debt is guaranteed by Broadcom and $18 billion is subordinated debt. A Blackstone fund will invest $9 billion to purchase subordinated debt with a 10% coupon, and the remaining $9 billion is expected to be distributed over the coming months. The report also said that four months ago the yield on a similar Anthropic transaction was 8.5%, indicating that borrowing costs have risen this time. The financing arrangement is currently in progress, and the subsequent distribution progress remains to be seen.
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From CoreWeave to Anthropic, chip-collateralized financing is reshaping the AI debt marketDevelopments
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- Source:IT Home · AI
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Oct 24
Wallstreetcn
From CoreWeave to Anthropic, chip-collateralized financing is reshaping the AI debt market
Chip-collateralized financing began in 2023 when Blackstone provided $2.3 billion in private credit to CoreWeave; now Broadcom is in talks with Wall Street institutions to arrange $60 billion in chip financing for Anthropic, while Nvidia announced a $500 billion cooperation framework with six major lenders. JPMorgan analysts estimate total chip spending could exceed $3 trillion before 2030, most of which will rely on debt financing. The article also notes that such deals are mostly private in nature with limited exit channels, cross-exposures among chipmakers, cloud computing giants and emerging cloud service providers are highly concentrated, and CoreWeave's corporate junk bonds have recently fallen to around 80 cents on the dollar with a yield of about 15%.