New York, Charlotte, North Carolina, and Palo Alto, California, October 26 / PRNewswire / -- Bank of America ( NYSE : BAC ), Blackstone ( NYSE : BX ), Citibank ( NYSE : C), and Morgan Stanley ( NYSE : MS ) (hereinafter collectively referred to as "Major Financial Partners") today announced a deal worth $63 billion to support the deployment of AI computing power, and will leverage Broadcom Corporation ( NASDAQ : AVGO )'s technology to serve Anthropic . This deal is part of the strategic computing power capacity agreement previously announced by Broadcom, with delivery expected to begin in 2027.

This transaction will be executed through a newly established special purpose entity ( SPV ), with committed financing provided by major financial partners. The funds will be used to purchase Broadcom's XPU AI accelerators and networking solutions, which will then be leased to Anthropic. The preferred lien portion of the financing is arranged by Bank of America, Citibank, and Morgan Stanley, while Blackstone is the sole provider of the subordinated lien commitment. Broadcom will provide residual value support to this SPV for the amount equivalent to the preferred lien financing. This transaction highlights the deep collaboration between AI's technology ecosystem and its financial ecosystem.

Blackstone's President and Chief Operating Officer Jon Gray stated: "The rapid growth in demand for AI is creating a tremendous opportunity to support computing capacity with large-scale financing. We are proud to be working with Broadcom to drive this development forward."

Morgan Stanley Co-Chairman Dan Simkowitz stated: "This transaction marks an important milestone in advancing the next round of AI computing power construction. Morgan Stanley has always been at the forefront of designing scalable capital solutions for AI infrastructure, and we are delighted to continue to promote new financing structures through this transaction."

Citi's Head of Banking Business and Executive Vice Chairman Vis Raghavan stated: "Financing for AI requires a capital solution of an unprecedented scale. Citi is proud to pioneer innovative structures and to leverage our expertise in global capital market structure design and distribution to help accelerate the construction of critical AI infrastructure, which will drive technological development for many years to come."

Bob Stumpf, Co-Chairman of Bank of America, stated: "To responsibly advance AI, it is necessary to transform ambitious technical plans into tangible computing infrastructure. Bank of America's expertise in infrastructure financing, advisory services, and its extensive platform of capital solutions enable us to provide innovative structures and mobilize institutional capital on a large scale. This transaction combines Broadcom's leading technology with substantial bank capital to accelerate the construction of computing capacity, thereby driving the next wave of AI innovation."

Broadcom President and CEO Hock Tan stated: "Today's transaction highlights the power of our advanced technology as well as our firm belief in the AI ecosystem. Fundamentally, the demand for AI computing power continues to grow at an astonishing rate. This proves that there is capital in the market to finance this growth, and Broadcom has a unique advantage in supporting this process."

Kirkland and Ellis LLP serve as legal advisors for Blackstone. Latham and Watkins LLP serve as legal advisors for Bank of America, Citibank, and Morgan Stanley. Sullivan and Cromwell LLP serve as legal advisors for Broadcom, while Evercore serves as a financial advisor.

For more information about this transaction, you can visit Broadcom's investor section on their website: https :// investors.broadcom.com.

About Blackstone

Blackstone is the world's largest alternative asset management company. Blackstone aims to bring attractive returns to institutional and individual investors by strengthening the capabilities of its investment companies. Blackstone manages assets worth nearly $1.4 trillion, with investment strategies covering real estate, private equity, credit, infrastructure, life sciences, growth equity, the secondary market, and hedge funds. For more information, see www.blackstone.com. You can follow @blackstone on LinkedIn, X (Twitter), and Instagram.

About Bank of America

Bank of America is one of the world's leading financial institutions, providing a comprehensive range of banking, investment, asset management, and other financial and risk management products and services to individual consumers, small and medium-sized enterprises (SMEs), and large corporations. The company offers unparalleled convenience in the United States, with over 69 million customers, approximately 3,500 retail financial centers, about 15,000 ATM (automated teller machines), and award-winning digital banking services, serving around 60 million verified digital users. Bank of America is a leader in global wealth management, corporate and investment banking, and trading across various asset classes, providing services to businesses, governments, institutions, and individuals around the world. As the largest lender to SMEs in the United States ( FDIC ), Bank of America provides industry-leading support to approximately 4 million SME families through a range of innovative and user-friendly online products and services. The company serves its customers through operations throughout the United States, its territories, and in more than 35 countries and/or jurisdictions. Bank of America's stock ( NYSE : BAC ) is listed on the New York Stock Exchange.

About Citibank

Citi is a leading banking partner serving institutions with cross-border needs, a global leader in wealth management, and also a highly recognized personal bank in its home market of the United States. Citi operates in over 180 countries and jurisdictions, providing a wide range of financial products and services to businesses, governments, investors, institutions, and individuals. For more information, please visit www.citigroup.com | X: @ Citi | LinkedIn : www.linkedin.com / company / citi | YouTube : www.youtube.com / citi | Facebook : www.facebook.com / citi.

About Morgan Stanley

Morgan Stanley is a leading global financial services company that provides a wide range of investment banking, securities, wealth management, and investment management services. The company has offices in 42 countries, serving corporate, government, institutional, and individual clients worldwide. For more information, please visit morganstanley.com.

About Broadcom

Broadcom Corporation (NASDAQ : AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software to meet the complex and critical needs of organizations around the world. Broadcom combines long-term investment in research and development with excellent execution to provide the best technology on a large scale. Broadcom is a company registered in Delaware with its headquarters located in Palo Alto, California. For more information, please visit www.broadcom.com.

Broadcom's Notice on Forward-Looking Statements

This announcement contains forward-looking statements (including those defined under Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements include, but are not limited to, information regarding the deployment of computing capacity through SPV and the timing of that deployment. The forward-looking statements are based on Broadcom's current expectations and judgments, available information, as well as current market trends and conditions, and involve risks and uncertainties that could lead to significant differences between actual results and these forward-looking statements. Therefore, reliance on these statements should not be excessive.

Specific uncertainties that may have a significant impact on future results include: global political and economic conditions and uncertainties; government regulations, trade restrictions, and trade tensions; fluctuations in the timing and volume of major customer demands; the ability to successfully invest in research and development and to successfully expand Broadcom's business strategy or adopt new business models; the ability to continuously win new business and the timing of such wins; dependence on contract manufacturing and outsourcing supply chains; reliance on a small number of suppliers; dependence on senior management and the ability to attract and retain qualified talent; the ability to prevent cybersecurity threats and intrusions into security systems; the ability to accurately estimate customer needs and adjust manufacturing and supply chains accordingly; the ability to improve manufacturing capacity and quality; involvement in legal proceedings; fluctuations in quarterly and annual operating results; Broadcom's competitive performance; the ability to maintain or increase gross margins; the ability to protect Broadcom's intellectual property rights and the uncertainties associated with related litigation costs; a high level of debt and the need to generate sufficient cash flow to repay and settle debts; as well as other national, regional, industry-specific, and global events and trends of a political, economic, commercial, competitive, and regulatory nature.

The documents submitted by Broadcom to the U.S. Securities and Exchange Commission (SEC) can be viewed for free at the website SEC at https://www.sec.gov. These documents contain important risk factors that may affect future results. Except as required by law, Broadcom has no intention nor obligation to publicly update or revise the forward-looking statements contained in this announcement.

Contact Information

Blackstone

Bank of America

Citi

Morgan Stanley

Broadcom

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