Broadcom's $63 Billion AI Financing Saved After CEO Intervention; Banks Plan $21 Billion Bond Sale

Broadcom (AVGO) salvaged a $63 billion AI infrastructure financing deal after participating banks threatened to exit over insufficient returns, with CEO Hock Tan personally negotiating higher loan rates and stronger loss protections, The Wall Street Journal reported. The deal, codenamed "Project North Star," is the largest AI infrastructure debt financing to date. It funds Anthropic's lease of tensor processing units developed jointly by Broadcom and Google (GOOGL). Bank of America (BAC), Citigroup (C) and Morgan Stanley (MS) led the arrangement, while Blackstone (BX) committed $9 billion. The package comprises roughly $42 billion in senior secured loans backed by a Broadcom guarantee and about $18 billion in subordinated debt without one. Banks plan to issue approximately $21 billion of investment-grade bonds as early as the first quarter of 2027 to syndicate exposure, down from an original $22 billion target, Bloomberg reported. Broadcom disclosed potential guarantee liability of up to 72.5% of outstanding lease amounts if Anthropic defaults. The structure has drawn circular-financing concerns: Anthropic expects to pay over $125.2 billion for Broadcom chips, while Broadcom and Google have pledged $42 billion and $20 billion in support respectively.