Broadcom (NASDAQ: AVGO) shares rose 2.37% to $337 in Tuesday’s premarket trading after Citi, Blackstone, Bank of America, and Morgan Stanley announced a $63 billion financing deal to purchase Broadcom’s artificial intelligence equipment for Anthropic.
The announcement came at 4:15 p.m. ET Monday, after the regular trading session ended.
Financing Supports 1.7 Gigawatts of AI Computing Capacity
The transaction will finance approximately 1.7 gigawatts of AI computing capacity, according to Broadcom’s legal adviser, Sullivan & Cromwell. That capacity forms part of a previously announced 3.5-gigawatt computing arrangement involving Broadcom, Google and Anthropic.
Under the financing structure, a newly established special purpose vehicle (SPV) will purchase Broadcom’s custom AI chips and networking equipment using funds committed by the financial partners. The SPV will then lease the equipment to Anthropic.
Equipment deliveries are expected to begin in 2027, when Anthropic is also scheduled to start accessing the expanded computing capacity. Broadcom previously disclosed that Anthropic’s consumption of that capacity depends on its continued commercial success.
Bank of America, Citi, and Morgan Stanley will arrange the senior, first-lien financing, while Blackstone will provide the committed portion of the lower-priority second-lien financing.
Broadcom will also provide residual-value support to the SPV equal to the first-lien financing amount. The arrangement gives senior lenders protection against potential declines in the equipment’s value, leaving Broadcom with financial obligations beyond supplying the technology. Reuters, citing two people familiar with the transaction, estimated the first-lien loans at about $43.5 billion, or 69% of the $63 billion total. The companies did not disclose the financing breakdown.
Earlier Monday, Anthropic filed for an initial public offering. The company plans to list its Class A shares on the Nasdaq Global Select Market under the ticker ANT. The company has not disclosed the offering’s size or price range.
Broadcom Shares Rebound but Remain Below Early-October Levels
Broadcom shares closed Monday at $329.17, up 2.33% from Friday’s $321.68 close. The recovery followed a volatile stretch that included a 4.31% decline on October 22.
At Tuesday’s premarket price, the stock remained about 6.8% below its October 9 closing price of $361.54.
Meanwhile, Broadcom Tokenized bStocks (AVGOB), a separate tokenized instrument linked to Broadcom shares, traded at $336.65, up 4.39% over the past 24 hours, according to CoinMarketCap. Its 24-hour trading performance is separate from that of Nasdaq-listed AVGO shares.