Apollo and Blackstone are wrangling $36B to buy Google chips for Anthropic (qz.com)

Apollo Global Management and Blackstone are coordinating a massive $36 billion debt financing deal aimed at securing Google’s custom tensor processing units (TPUs) for AI startup Anthropic. This transaction, structured through a special-purpose vehicle, involves leasing these advanced chips back to Anthropic for use in their data centers across several states, including New York and Texas. By leasing rather than purchasing the chips outright, Anthropic can expand its computing capacity without directly incurring the associated debt on its balance sheet. This significant move highlights the growing demand for AI infrastructure and positions Anthropic as a key player in the AI sector, particularly as it recently achieved a valuation of $965 billion, surpassing competitor OpenAI. The involvement of Broadcom—responsible for developing the TPUs—adds a layer of security to the deal, as it has agreed to support the transaction’s residual value in case of any defaults. With both firms planning to distribute parts of the debt to outside investors and initiate funding in stages linked to chip deliveries, the deal marks a pivotal moment for the AI/ML community, underscoring the strategic financial maneuvers companies are making in the rapidly evolving tech landscape.