Banks Plan Record Bond Sale to Fund Artificial Intelligence Chips

2026-10-28 companies

New York, Wednesday, 28 October 2026.
Wall Street prepares a twenty-one billion dollar bond sale to fund Anthropic’s computing infrastructure, as corporate borrowing for artificial intelligence spending surpasses four hundred fifty-five billion dollars this year.

A $21 Billion Bond Sale Takes Shape for AI Infrastructure

Investment banks led by Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), and Morgan Stanley (NYSE: MS) are finalizing plans to market up to $21 billion in investment-grade corporate bonds in early 2027 as part of a $63 billion financing package arranged by Broadcom Inc. (NASDAQ: AVGO) to supply custom semiconductor chips to artificial intelligence developer Anthropic PBC [1][6]. The transaction is structured through a special purpose vehicle (SPV) that will purchase Broadcom’s AI accelerators and networking equipment, leasing them to Anthropic with lease payments servicing the debt [3][7]. Broadcom is providing residual value support as a financial backstop, ensuring lenders against potential shortfalls in lease payments [9].

The Scale of AI Financing in 2026

The bond sale is part of a broader surge in corporate borrowing for artificial intelligence, with global companies having borrowed more than $455 billion across markets in 2026 alone to fund AI-related spending [1][5]. This figure underscores the unprecedented scale of debt commitments being deployed to expand large-scale AI computing infrastructure, as enterprises and financial institutions bet heavily on the technology’s long-term growth potential. The $63 billion financing package for Anthropic represents a significant portion of this total, reflecting the critical role of custom AI chips in powering next-generation models [3][6].

Structural Innovations in AI Financing

The financing structure relies on an SPV that borrows funds to purchase equipment, which is then leased to Anthropic. This arrangement allows the debt to be serviced through Anthropic’s lease payments, while Broadcom’s residual value support acts as a safeguard for lenders [3][9]. The bonds, expected to mature in approximately five years, will be issued in the first quarter of 2027, with principal repaid over the life of the notes subject to market conditions [1][6]. Analysts note that this model shifts risk away from traditional lenders while tying repayment directly to the operational success of Anthropic’s AI deployments [9].

Market and Regulatory Context

The timing of the bond sale coincides with Anthropic’s pending initial public offering (IPO), which the company has targeted for the week of November 16, 2026, aiming to raise $100 billion or more at a valuation of $1.5 trillion to $2 trillion [5]. The IPO filing disclosed up to $42 billion in Broadcom lending and a five-year, $125.2 billion lease for tensor processing unit capacity, further illustrating the deep financial ties between the companies [5][7]. While some lenders initially hesitated due to rising interest rates and risk concerns, Broadcom CEO Hock Tan intervened to secure the deal by agreeing to higher interest rates and increased loss guarantees [5][6].

Investor and Analyst Reactions

Analysts at Morningstar have reiterated their bullish outlook on Broadcom, citing the Anthropic deal as a key driver of revenue growth in 2027 and beyond. Morningstar estimates the deal could contribute nearly $60 billion in Broadcom revenue in 2027, with Anthropic positioned to become the company’s largest customer [4]. Similarly, Baird has maintained an ‘outperform’ rating on Broadcom with a $630 price target, highlighting the growth opportunity despite potential financial risks. The investment bank noted that Broadcom’s residual-value support, which could reach a peak exposure of $43 billion near the end of 2027, is a contingent liability rather than direct borrowing [8].

Sources

Anthropic Broadcom