Broadcom agrees to provide up to $42 billion in financing to Anthropic for AI infrastructure expansion.

Broadcom has agreed to provide Anthropic with up to $42 billion in financing through convertible notes to support the artificial intelligence company's infrastructure expansion. The financing would cover approximately one-third of Anthropic's $125.2 billion five-year commitment for tensor processing unit (TPU) computing capacity, according to details disclosed in Anthropic's IPO prospectus.

Under the arrangement, Broadcom retains the option to bring in a financing partner, and the convertible notes could potentially be converted into equity in Anthropic. The company stated that it does not expect any notes to be sold before completing its initial public offering.

Broadcom's dual role as both a hardware supplier and financing provider creates potential conflicts of interest, as Anthropic disclosed in its filing. The company warned that pricing decisions, hardware availability and certain payment or performance defaults could affect its ability to secure computing capacity.

Broadcom and Google have previously collaborated on the development of successive TPU generations. In April, Anthropic said it had expanded its relationship with both companies to gain access to next-generation TPU computing capacity beginning in 2027.

The financing arrangement reflects a broader trend in the AI infrastructure market, where semiconductor companies and technology providers are increasingly supporting customers' large-scale computing investments. Anthropic's IPO prospectus disclosed approximately $4.6 billion in 2025 revenue and an operating loss exceeding $8 billion, while outlining significant future infrastructure commitments.