To The Moon

This Broadcom–Anthropic deal caught my attention because it goes much further than a normal chip-supply agreement.

$Broadcom(AVGO)$   has agreed to provide Anthropic with up to $42 billion in financing to help fund its infrastructure spending, according to Anthropic’s IPO filing. At the same time, Broadcom is involved in supplying the hardware and leasing equipment to Anthropic.

And there is another important piece:

Anthropic is expected to become Broadcom’s largest custom-chip customer in 2027.

So Broadcom isn’t simply selling the picks and shovels for the AI buildout.

It’s potentially helping finance the customer buying those picks and shovels.

That’s a fascinating structure.

Anthropic has committed to $125.2 billion of TPU computing capacity over five years, with the Broadcom financing potentially covering roughly one-third of that commitment. 

The obvious bullish interpretation is easy to understand.

If Anthropic continues scaling rapidly, Broadcom could benefit from several parts of the same relationship — custom chip design, infrastructure and financing.

Broadcom has also said it expects AI semiconductor revenue of around $115 billion in fiscal 2027 and $230 billion in fiscal 2028. 

But what makes this story more interesting to me is the other side.

Anthropic itself has highlighted potential conflicts of interest because Broadcom is both a hardware supplier and a financing partner.

If Broadcom has influence over pricing, hardware decisions and financing, those relationships aren’t completely independent.

Anthropic has also warned that certain payment or performance defaults could accelerate a substantial portion of its lease obligations, while potentially restricting access to the $42 billion financing facility. 

That doesn’t automatically make the arrangement a problem.

It simply shows how interconnected the AI infrastructure market is becoming.

The companies building AI models need enormous amounts of compute.

The companies supplying that compute need customers capable of supporting enormous capital commitments.

And increasingly, the line between customer, supplier, investor and financier is becoming blurred.

That’s the part I’m watching.

The AI boom isn’t just about who makes the fastest chip anymore.

It’s also about who finances the infrastructure, who owns the relationships and who carries the risk when those huge commitments don’t generate the expected returns.

Broadcom’s role in Anthropic’s expansion is a good example of how complicated that ecosystem is becoming.

For AVGO, the opportunity is enormous.

But so is the importance of understanding what sits behind those headline revenue numbers.

Sometimes the most interesting part of an AI deal isn’t the chip.

It’s who is paying for it.

Not financial advice.