Full Breakdown
Anthropic’s $60 B AI Chip Financing Faces Double-Digit Yield for Junior Debt
By Drooid · · How we work
Core Deal Overview
Anthropic is arranging a $60 billion financing—Project North Star—to fund a lease of roughly 1.5 GW of Google’s custom TPUs. The structure splits into $42 billion of senior debt guaranteed by Broadcom and an $18 billion junior tranche. Blackstone-managed funds will anchor half of the junior tranche with a $9 billion investment, receiving a coupon of more than 10 %. The senior debt is backed by Broadcom’s guarantee; the junior slice relies on Anthropic’s five-year lease payments. The financing is slated to be drawn down in 2027 and could become tradable in the 144A market.
Background & Context
Earlier this year Anthropic completed a $4.4 billion financing (Project Big Sky) at an 8.5 % yield. The new deal marks a sharp rise in borrowing costs for AI infrastructure lenders. Broadcom, which designs the TPUs, also provides a convertible-note facility of up to $42 billion and guarantees the senior tranche. Pricing for Anthropic’s junior debt reflects broader market concerns after CoreWeave’s 9.625 % notes climbed above 15 % in October.
Data & Statistics
- Total financing: $60 billion.
- Senior debt: $42 billion, guaranteed by Broadcom.
- Junior debt: $18 billion; Blackstone anchors $9 billion.
- Coupon to Blackstone: >10 %.
- Benchmark yield for similarly rated borrowers: ?7 %, a spread of >300 bps.
- Credit rating: BB+ (one notch below investment grade) by KBRA (June).
- Lease commitment: $125.2 billion over five years.
- Planned TPU acquisition: ?1.5 GW.
- Company valuation: $965 billion after May Series H round.
Official Statements & Responses
Anthropic has not commented on the terms. Blackstone declined comment. Blackstone’s joint venture with Google, announced on May 18, commits $5 billion in equity to deliver TPU-based capacity and includes a partnership with Anthropic.
Conflicting Reports & Gaps
- The BB+ rating was disclosed months after issuance, leaving early investors without full credit information.
- Prospective junior-debt buyers declined participation on June 2 due to missing cash-flow data.
- Issuance discounts and fees that will affect Blackstone’s total return have not been disclosed.
Timeline
- May 4 – Blackstone joins Anthropic, Hellman & Friedman and Goldman Sachs to launch an enterprise AI services firm.
- May 18 – Blackstone unveils a joint venture with Google, committing $5 billion in equity.
- June 2 – Some prospective junior-debt buyers decline participation.
- June 9 – Apollo Global Management announces a $35 billion financing commitment for Broadcom’s AI platform.
- Oct 2 – Banks reported to be assembling an additional $60 billion of chip financing.
- Oct 14 – CoreWeave’s 9.625 % notes rise above 15 %.
- Oct 16 – Anthropic offers Blackstone a coupon exceeding 10 % for a $9 billion junior slice.
What’s Next
The financing is scheduled to be drawn down in 2027, after which the debt may enter the 144A market, offering early investors an exit route. Lenders will monitor Anthropic’s revenue growth and cash-flow generation to assess the sustainability of its TPU lease commitments under the current high-yield environment.