BofA, Citi, Morgan Stanley and Blackstone arrange $63 billion Broadcom AI-compute financing
For the chief credit officer at a regional bank
Bank of America, Blackstone, Citi and Morgan Stanley announced a $63 billion transaction to enable the deployment of AI compute capacity for Anthropic, leveraging Broadcom Inc. technology, according to a press release; the text did not give a date.1
The release says the transaction is part of a strategic compute capacity agreement previously announced by Broadcom, with expected deliveries starting in calendar 2027.1 It will run through a newly formed special purpose vehicle (SPV) with committed financing from the four firms, which the release calls the Lead Financial Partners, to buy Broadcom XPU AI accelerators and networking solutions that will be leased to Anthropic.1
Bank of America, Citi and Morgan Stanley are arranging the first lien portion, and Blackstone is the sole provider of the committed portion of the second lien financing, according to the release.1
Broadcom is providing residual value support to the SPV for an amount equivalent to the first lien portion of the financing, the release said.1
The release did not disclose the split between first and second lien, pricing, tenor, lease terms or the number of chips to be bought.1
Kirkland & Ellis advised Blackstone, Latham & Watkins advised the three banks, and Sullivan & Cromwell advised Broadcom, with Evercore as Broadcom's financial advisor.1
The structure puts bank and private credit money behind chips leased to an AI developer, with Broadcom's residual value support covering the first lien. For banks, the first lien exposure depends on that support as well as on the chips and the tenant, so counterparty risk on Broadcom matters in underwriting similar deals.
Expected deliveries of the Broadcom equipment begin in calendar 2027, and Broadcom said additional information is available on the Investors section of its website.1
Our take. The first lien in a $63 billion financing of chips leased to Anthropic is backed, dollar for dollar, by Broadcom, the company selling the chips. Copy this structure and you are underwriting Broadcom, not the hardware.
Action. Credit risk: Underwrite AI-compute lease deals on the residual-value guarantor's credit, and stress chip collateral with no residual support assumed.
What our records say
Bank of America built its AI strategy around one assistant, Erica, extended step by step into employee tools, treasury products and advisor workflows, funded by a technology budget of $14 billion a year, more than $4.1 billion of it for new initiatives including AI (as of Oct 19, 2026).12
From our records
- Bank of Americabank · latest Treasury, FinCEN and OCC impose $1.21 billion in AML and sanctions penalties (Oct 2026) · vendors BioCatch, Microsoft Copilot, Claude
- Citigroupbank · latest Payments chief: no AI model to authorise payments (Oct 2026) · vendors Feedzai, BioCatch, Socure · enforcement 8 actions since 2016; latest Federal Reserve civil money penalty, $60.6 million (Jul 2024)
- Morgan Stanleybank · latest Design partner for OpenAI's banker research tool (Sep 2026) · vendors Quantexa, ChatGPT Enterprise, Claude · enforcement 1 action since 2016; latest OCC consent order, $60 million (Oct 2020)
- Claude (Anthropic)vendor · banks using it (21) Goldman, JPMorgan, BankUnited · alternatives Microsoft Copilot, ChatGPT Enterprise, Gemini Enterprise
Sources
- Primary sourceBofA, Citi, Morgan Stanley and Blackstone arrange $63 billion Broadcom AI-compute financing Morganstanley