Apollo Global Management and Blackstone are arranging a $36 billion debt financing deal to acquire Google’s custom Tensor Processing Units (TPUs). This transaction represents the largest private credit deal to date. It also marks the biggest debt-financed chip acquisition in history.
The financing uses a special purpose vehicle to purchase the specialized AI hardware for startup Anthropic to lease. Anthropic will repay the debt primarily through its lease payments.
Broadcom, which co-develops the TPUs with Google, will reportedly backstop significant portions of the deal. This guarantee provides a financial safety net for the lenders.