NEW YORK CITY, New York: Broadcom has agreed to provide Anthropic with up to US$42 billion in financing for infrastructure spending, deepening a relationship that spans chip supply, equipment leasing, and financing, according to the AI company's IPO prospectus.

The arrangement could help finance about a third of Anthropic's $125.2 billion commitment for a five-year lease of tensor processing unit, or TPU, computing capacity.

Under the agreement, Broadcom could designate a financing partner, and Anthropic could convert debt instruments into shares. Anthropic said it does not expect to sell any notes before completing its IPO.

The financing adds another dimension to Broadcom's relationship with Anthropic compared with major partners and investors such as Amazon, which primarily provides cloud infrastructure and distribution for Anthropic's Claude model.

Anthropic is also expected to become the largest customer in Broadcom's chip-design business next year.

"It feels that there's quite a concentrated bet right now on two companies being able to generate enough revenues to support all the financing that's happened," said Robert Leitao, managing partner of Rothschild & Co.

Google and Broadcom have collaborated on several generations of TPUs. In April, Anthropic announced an expanded partnership with Broadcom and Google that will provide access to multiple gigawatts of next-generation TPU computing capacity beginning in 2027.

For Broadcom, the financing arrangement follows an approach rival Nvidia has used in recent years, using its financial position to help boost chip sales.

"Nvidia is putting in place a massive amount of its balance sheet, and Broadcom is having to follow suit," Seaport Research analyst Jay Goldberg said.

Anthropic disclosed that Broadcom's role as both a hardware supplier and financing partner creates "potential conflicts of interest" that could affect its ability to access the computing power it needs. The company also warned that Broadcom's pricing and hardware decisions could affect its ability to secure sufficient computing infrastructure.

Broadcom did not comment. Anthropic declined to comment.

Anthropic said it deposited cash into a restricted account for Broadcom's benefit in April 2026 in connection with the convertible debt and could be required to contribute additional amounts under certain circumstances.

The company also warned that certain payment or performance defaults could make a substantial portion of its lease obligations immediately due while restricting its ability to use the $42 billion financing facility to cover those payments.

Broadcom expects AI semiconductor revenue of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028.