Broadcom (NASDAQ:AVGO) stock has gone almost nowhere in 2026. At around $342 as I write, the chip designer’s shares trade about 1% below where they ended 2025 — and about 29% under their June 2 record close of $481.57.
Monday’s news gave investors a new reason to look. Bank of America, Blackstone, Citigroup, and Morgan Stanley are providing $63 billion in funding to a newly formed special purpose vehicle that will buy Broadcom’s artificial intelligence (AI) chips for Anthropic. The vehicle will lease the hardware to the AI lab, with deliveries expected to begin in 2027.
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But Broadcom is keeping part of the risk itself. A filing the firm made with the Securities and Exchange Commission on Tuesday pegs its maximum potential liability under the deal at around $43 billion.
Image source: Getty Images.
Anthropic’s 2027 orders just got easier to pay for
The $63 billion isn’t a new order. Deliveries fall under a compute agreement Broadcom and Anthropic had already announced. And Anthropic’s initial public offering (IPO) filing says its five-year equipment leases with Broadcom already call for around $161.2 billion in rent, not counting interest.
What the financing changes is who pays up front. Outside lenders fund the purchase, and the AI lab pays rent over time rather than handing over tens of billions of dollars before the racks arrive.
Put another way, I think the deal makes revenue Broadcom was already counting on more likely to come in.
And Broadcom is counting on a lot of it. On the company’s Sept. 2 earnings call, CEO Hock Tan said he expects Anthropic to deploy another 5 gigawatts of tensor processing units (TPUs), the custom AI chips Broadcom helps design, in 2027. He also expects Anthropic to become Broadcom’s biggest custom-chip customer that year. Management sees AI semiconductor revenue doubling again to around $115 billion for fiscal 2027.
How much risk does Broadcom keep?
A good bit, but less per dollar financed than last time.
According to Tuesday’s filing, Broadcom is providing “residual value support” to the new vehicle. If Anthropic defaults, Broadcom covers any gap between 72.5% of what’s still owed under the lease and what the racks fetch when they’re sold. The backstop rises as racks are delivered and falls as Anthropic pays its rent.
