MarketsAVGOOCT 03, 2026

Broadcom to lend Anthropic up to $42B, financing one-third of $125.2B TPU lease

Anthropic's IPO prospectus discloses a convertible facility from Broadcom tied to a five-year compute commitment, as the Claude maker targets a pre-Thanksgiving listing at a $1.8T-$2T valuation.

BY HENLEY MARRAST · MARKETS DESK

Broadcom has agreed to lend Anthropic up to $42 billion in convertible notes, financing roughly one-third of a $125.2 billion, five-year lease of tensor processing unit compute capacity, according to Anthropic’s IPO prospectus reviewed by Reuters and reported Wednesday by CNBC. The disclosure arrives as Anthropic targets a pre-Thanksgiving listing at a $1.8 trillion to $2 trillion valuation, with the roadshow expected to begin the week of Nov. 9, per Bloomberg via Yahoo Finance.

The structure is circular in a way the filing doesn’t quite hide. Broadcom supplies the chips, leases the compute, and now lends against the lease. The notes may convert into Anthropic shares, Broadcom may designate a financing partner, and Anthropic says it doesn’t expect any notes to be sold before the IPO closes. Anthropic already deposited cash into a restricted account for Broadcom’s benefit in April 2026, and the company warns that certain payment or performance defaults could accelerate a substantial portion of its lease obligations while limiting access to the $42 billion facility itself.

Anthropic’s own prospectus flags “potential conflicts of interest” given Broadcom’s dual role as hardware supplier and lender, noting that Broadcom’s pricing and hardware decisions could affect its ability to procure compute. That’s roughly the strongest language an S-1 drafter will use about a counterparty that’s also underwriting the business.

The scale explains the structure. Broadcom projects AI semiconductor revenue of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028, with Anthropic becoming its largest compute customer next year. Anthropic booked roughly $4.6 billion in 2025 revenue. The lease is priced against a 2028 Broadcom, not a 2025 Anthropic.

For readers tracking how the compute cost floor is being written into public filings, this echoes Nscale’s $103.4B backlog S-1 and the $30B NYSE listing filing from Sept. 21. Three prospectuses, one message: the price of frontier inference isn’t a spot rate drifting toward zero. It’s a multi-year obligation, disclosed under penalty of securities law, running well past 2028.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.