Broadcom and Anthropic finalize a $63 billion debt financing deal

Broadcom (AVGO.US) and Anthropic have finalized a $63 billion debt deal to finance artificial intelligence infrastructure. The CEO of the chip manufacturer Broadcom has spent nearly two months trying to get banks to commit over $40 billion for what is the largest AI debt transaction ever. The deal aims to enable Anthropic to lease dedicated chips that Broadcom is co-developing with Google. Although Anthropic is the main beneficiary of this transaction, the startup still needs help from its larger commercial partners to raise capital. Anthropic and Broadcom are trying to complete the deal before Anthropic's highly anticipated IPO filing. As Anthropic’s chip supplier, Broadcom is at the center of the action. Leveraging its excellent credit rating, Broadcom has agreed to provide partial financial guarantees to give banks greater confidence in lending over $40 billion despite the immense risk. However, according to individuals familiar with the matter, some banks have grown increasingly anxious in recent weeks about participating in the project, known as “Project Polaris.”