A bank consortium has arranged roughly $22 billion in debt tied to Blackstone and Alphabet, part of a broader $35 billion financing package that lets Anthropic lease Alphabet's custom AI chips. The structure ranks among the largest private credit transactions ever assembled and could grow past $70 billion if a discussed follow-on round goes through.
A consortium of banks has arranged roughly $22 billion in debt connected to Blackstone and Alphabet as part of a broader $35 billion multi-tranche financing package, one of the largest private credit transactions ever assembled. The deal, led by Apollo Global Management and Blackstone, is designed to fund Anthropic's access to custom AI chips that Alphabet develops in partnership with Broadcom.
How the financing is structured
A special-purpose vehicle sits at the center of the deal: a standalone legal entity created to buy Alphabet's tensor processing units and lease them back to Anthropic. The structure lets Anthropic scale its computing power without shouldering the full capital burden of buying the chips outright.
The initial target is 1 gigawatt of compute capacity, with ambitions to reach approximately 20 GW by 2028 through what's being called the AI XPV platform. The debt itself is split into several tranches with different risk and pricing. The senior portion included approximately $6 billion in A1 notes priced at Treasuries plus 1%, a tight spread made possible in part by Broadcom's credit support on the senior tranches.
Around $24 billion was sold to asset-backed investors at a yield of 5.75%. Junior debt, which sits lower in the repayment hierarchy and carries more risk, amounted to roughly $4.4 to $4.5 billion at an 8.5% interest rate, without the Broadcom backstop. Morgan Stanley and Bank of America acted as placement agents, and by July 2026 portions of the debt were already trading in secondary markets.
Why Broadcom's backing matters
Broadcom's credit support on the senior tranches compressed spreads to levels typically reserved for investment-grade corporate borrowers. Broadcom manufactures the chips in partnership with Alphabet, so backstopping the debt effectively guarantees demand for its own products.
A financing structure that could keep growing
Blackstone has reportedly discussed follow-on financing pitched at about $36 billion for additional Anthropic chip needs. If that materializes, the combined debt supporting Anthropic's compute infrastructure would exceed $70 billion, a striking figure for a company that remains privately held. The scale of institutional appetite is already visible in the pricing: A1 notes at Treasuries plus 1% are the kind of spread usually seen on debt backed by a Fortune 500 company, a confidence that is partly structural, thanks to Broadcom's backstop.
Source: Crypto Briefing
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