Apollo Global Management LLC and BlackRock are in the process of recruiting additional investors for a debt financing transaction worth approximately $36 billion. The capital raised is intended to assist Anthropic PBC in developing its artificial intelligence (AI) infrastructure.
According to sources familiar with the matter, the debt financing will be used for the purchase of Google's custom-designed chips, known as Tensor Processing Units (TPUs). Anthropic is then expected to lease these chips. Individuals who requested anonymity due to the private nature of the information indicated that Broadcom, which assisted Google in developing these chips, is supporting the payment for the largest portion of the transaction.
This deal stands to become one of the largest private credit transactions on record and would represent the biggest chip financing debt deal ever. The arrangement aims to leverage Broadcom's credit standing to provide Anthropic, whose valuation has recently surpassed that of its rival OpenAI, with access to computational resources.
Following the news, shares of Broadcom and Google's parent company, Alphabet Inc., rose in after-hours trading. Broadcom's stock climbed as much as 1.9% to an after-hours high of $434.84, while Alphabet's shares increased by up to 1.2% to $394.81.
The sources stated that investors have been asked to submit their indications of interest this week, with the transaction expected to be finalized next week. However, negotiations are ongoing, and details may still be subject to change.
Representatives for Apollo, BlackRock, and Anthropic declined to comment. Representatives for Broadcom and Google did not immediately respond to requests for comment.
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