Broadcom will invest $42 billion in AI startup Anthropic through convertible notes, Reuters reported on October 1 and 2. The deal was disclosed in Anthropic’s IPO prospectus. It is one of the largest AI investments ever made. The agreement includes a $125.2 billion commitment for AI chips over five years. Anthropic will buy Broadcom’s TPUs to power its data centres. The partnership deepens ties between the chipmaker and the AI lab. Anthropic is racing to build bigger and more capable AI models. That needs huge computing power. The deal gives it a guaranteed chip supply for years. Broadcom gets a major customer locked in. The investment values Anthropic among the world’s most valuable startups. Its IPO is among the most anticipated in tech. The news sent Broadcom shares higher on the announcement. The deal still needs final regulatory clearances before the money changes hands. Anthropic declined to comment beyond the filing.