Broadcom has agreed to lend Anthropic up to $42 billion. The arrangement was disclosed in Anthropic’s IPO prospectus. Reuters reported it on October 1.

The loan would finance about a third of Anthropic’s $125.2 billion five-year commitment. The commitment covers leases of tensor processing unit capacity. Broadcom co-develops the TPUs with Google.

The financing would take the form of convertible notes. They could convert into Anthropic shares. Broadcom could also bring in a financing partner. Anthropic does not expect to sell any notes before its IPO is completed.

The prospectus flags “potential conflicts of interest”. Broadcom is Anthropic’s chip supplier, lessor and now lender. The filing warns Broadcom’s pricing and hardware decisions could affect Anthropic’s access to compute.

Anthropic’s 2025 revenue was nearly $4.6 billion, the prospectus says. Its operating loss exceeded $8 billion. The company is targeting a valuation above $2 trillion.

Anthropic is expected to become Broadcom’s largest compute customer in 2027. Next-generation TPU capacity comes online that year.

“It feels that there’s quite a concentrated bet right now,” Rothschild’s Robert Leitao told Reuters.