Broadcom and Amazon Drive Massive AI Infrastructure Financing
Broadcom and Amazon are utilizing complex financing structures to fund the massive capital requirements of the AI sector, with Broadcom lending $42 billion to Anthropic and Amazon issuing $62 billion in bonds.
The cost of building AI infrastructure has reached a scale where major tech companies are increasingly acting as shadow banks. Broadcom entered an agreement on Oct. 1 to provide Anthropic with up to $42 billion in financing to support a $125.2 billion TPU lease arrangement. This deal includes an option for Broadcom to convert the debt into an equity stake in the AI startup.
Broadcom’s strategy involves using special-purpose vehicles to manage AI chip financing, a structure that allows for significant leverage outside of the company's primary balance sheet. In June 2026, the firm partnered with Apollo Global Management and Blackstone to finance over 20 gigawatts of compute capacity, with an initial $35 billion tranche already closed. By August 2026, reports indicated Broadcom was negotiating between $60 billion and $100 billion in additional debt financing for similar purposes.
Broadcom expects its AI semiconductor revenue to reach approximately $58 billion for fiscal 2026, with projections rising to $115 billion in fiscal 2027 and potentially doubling again the following year. The company aims to position Anthropic as its primary custom-chip client by 2027.
Amazon is also aggressively funding its AI buildout through debt markets. The company issued $37 billion in bonds in March and an additional $25 billion in July, totaling over $62 billion in issuance for the year. These funds are dedicated to capital expenditure for AI infrastructure.
The broader industry is seeing a surge in spending, with total hyperscaler investment in AI infrastructure projected to surpass $600 billion in 2026. Companies including Alphabet, Microsoft, and Meta are also contributing to this capital-intensive expansion.
For Anthropic, the financing arrangement provides a way to secure necessary compute power without immediate equity dilution. However, the deal introduces risks for Broadcom, which faces the possibility of holding a large receivable from a cash-burning startup if the company's valuation does not meet expectations.
