Bank of America, Blackstone, Citi and Morgan Stanley Launch $63 Billion Financing Structure for Broadcom-Powered AI Compute Capacity

Four of Wall Street's largest financial institutions have joined forces to structure a landmark $63 billion financing transaction aimed at accelerating the deployment of artificial intelligence compute infrastructure, leveraging Broadcom Inc.'s semiconductor technology for AI developer Anthropic. The deal, announced jointly by Bank of America, Blackstone, Citi and Morgan Stanley, represents one of the largest private financing structures ever assembled for AI-related infrastructure and underscores the growing convergence of capital markets and the technology sector.

The transaction will be executed through a newly formed special purpose vehicle with committed financing from the four lead financial partners. The proceeds will support the purchase of Broadcom XPU AI accelerators and networking solutions, which will then be leased to Anthropic. The first lien portion of the financing is being arranged by Bank of America, Citi and Morgan Stanley, while Blackstone is serving as the sole provider of the committed portion of the second lien financing. Broadcom is providing residual value support to the SPV equivalent to the first lien portion of the financing. The structure is part of a broader strategic compute capacity agreement previously announced by Broadcom, with expected deliveries beginning in calendar 2027.

The transaction highlights the deep collaboration across the AI technology and financial ecosystems at a time when demand for AI compute continues to surge. Jon Gray, President and COO of Blackstone, said the rapidly growing demand for AI is creating an enormous opportunity to finance compute capacity at scale, adding that the firm is proud to help advance this buildout with Broadcom. Dan Simkowitz, Co-President of Morgan Stanley, described the transaction as an important milestone in enabling the next buildout of AI compute capacity, noting the firm's role at the forefront of designing scalable capital solutions for AI infrastructure. Vis Raghavan, Head of Banking and Executive Vice Chair at Citi, said financing AI demands capital solutions at unprecedented scale and that Citi is proud to pioneer innovative structures and leverage its global capital markets expertise to accelerate the buildout of critical AI infrastructure. Jim DeMare, Co-President of Bank of America, said advancing AI responsibly requires turning ambitious technology plans into tangible compute infrastructure, and that the transaction brings together Broadcom's leading technology and significant bank capital to accelerate the buildout of compute capacity powering the next wave of AI innovation.

Hock Tan, President and CEO of Broadcom Inc., said the transaction underscores the power of the company's advanced technology and its strong conviction in the AI ecosystem, noting that the need for AI compute continues to grow at an extraordinary pace. He added that the deal validates the availability of capital to finance such growth and that Broadcom is uniquely positioned to enable it. The financing structure signals a new paradigm in which banks and alternative asset managers are increasingly designing bespoke capital solutions to fund the physical infrastructure underpinning AI development, a shift that could reshape how compute capacity is financed globally in the years ahead.

Kirkland & Ellis LLP is serving as legal counsel to Blackstone, while Latham & Watkins LLP is advising Bank of America, Citi and Morgan Stanley. Sullivan & Cromwell LLP is serving as legal counsel to Broadcom, with Evercore acting as financial advisor.