Apollo Global Management and Blackstone are structuring a $36 billion debt package for AI firm Anthropic. The financing enables Anthropic to acquire and lease Google’s Tensor Processing Units (TPUs). This deal represents one of the largest private credit transactions in history.
The partners are using a special purpose vehicle to keep the debt off Anthropic’s balance sheet. Broadcom is backstopping the largest portion of the debt to significantly reduce credit risk. Broadcom currently co-designs the TPUs with Google and aligns the debt with its own credit profile.
This guarantee allows $25 billion in senior debt to be priced at a 5.75% yield. A riskier, unsecured portion of the financing will yield between 8% and 9%.