Broadcom has agreed to lend Anthropic up to $42 billion to finance its artificial intelligence infrastructure, according to Anthropic’s IPO prospectus reviewed by Reuters on October 1. The financing would take the form of convertible notes.

The loan could cover about a third of Anthropic’s $125.2 billion, five-year commitment to lease tensor processing unit computing capacity. Broadcom works with Google on custom TPUs and is expected to become Anthropic’s largest compute supplier in 2027.

The arrangement highlights the circular financing spreading across the AI industry: Broadcom supplies chips and equipment, then lends money that Anthropic uses to lease infrastructure built on Broadcom-linked technology. Anthropic’s filing flags potential conflicts from Broadcom’s dual role as supplier and financier.

Anthropic expects to spend at least $518 billion on AI infrastructure over a decade, with about 80 per cent of it non-cancelable. Its other partners include Google, Amazon, Microsoft, xAI and AMD. Analysts say the deal shows how deeply chipmakers are now embedded in the capital structure of the AI industry.