Anthropic, the developer of the Claude AI model, will raise up to $42 billion from chipmaker Broadcom to cover infrastructure spending, according to an IPO prospectus reviewed by Reuters. The arrangement forms part of Anthropic’s plan to expand computing capacity as it prepares for a potential IPO as early as November 2026 at a valuation of up to $2 trillion.

Broadcom to finance computing expansion

The companies’ relationship covers computing capacity, equipment leasing and financing. Under the arrangement, Broadcom may bring in a financial partner, while the debt instruments could potentially be converted into Anthropic shares. Anthropic said it does not expect to sell such convertible notes before completing its IPO.

The financing could cover about one-third of Anthropic’s $125.2 billion in commitments under a five-year agreement to lease computing capacity based on tensor processing units, or TPUs.

Google and Broadcom have collaborated on several generations of TPUs. In April 2026, Anthropic announced an expanded partnership with both companies that gives it access to several gigawatts of next-generation TPU computing capacity beginning in 2027.

Anthropic could consequently become Broadcom’s largest chip-design customer as early as 2027. Broadcom forecasts AI semiconductor revenue of about $115 billion in fiscal 2027 and $230 billion in 2028.

“Nvidia is putting in place a massive amount of its balance sheet, and Broadcom is having to follow suit,” said Jay Goldberg, an analyst at Seaport Research.

Anthropic flags potential conflicts

Anthropic said in its prospectus that Broadcom’s dual role as a hardware supplier and financial partner creates “potential conflicts of interest.” Broadcom’s pricing and hardware decisions could affect Anthropic’s ability to secure sufficient computing infrastructure, the company said.

Anthropic also said it deposited funds into a restricted account for Broadcom’s benefit in April 2026 and may have to contribute additional amounts under certain circumstances.

Certain failures to meet payment or other obligations could accelerate demands for a significant portion of lease payments, Anthropic warned. Such circumstances could also limit its ability to use Broadcom’s $42 billion credit line to cover those payments.

“It feels that there’s quite a concentrated bet right now on two companies being able to generate enough revenues to support all the financing that’s happened,” noted Robert Leitao, managing partner at Rothschild & Co.

The partnership is part of Anthropic’s broader infrastructure plans. The company plans to spend about $518 billion on cloud services, computing capacity and infrastructure in the coming years.

Source: Incrypted