Anthropic has offered investment firm Blackstone a return of more than 10% to help finance a $60 billion debt package for purchasing advanced artificial intelligence (AI) chips, highlighting the rising cost of funding the sector’s expanding infrastructure needs, the Financial Times (FT) reported on October 17.
The financing, known as Project North Star, is intended to support Anthropic’s procurement of about 1.5 gigawatts of custom semiconductors developed by Google. The deal is expected to be the largest chip financing of its kind to date.
According to the FT report, Blackstone funds would invest $9 billion in junior debt backed by Anthropic’s lease payments over five years. This would account for half of the $18 billion junior loan component of the financing package.
Blackstone was offered a 10% coupon, with the overall return expected to be higher after accounting for discounts and fees, the report said, citing people familiar with the matter. By comparison, borrowers with similar credit profiles typically pay yields of around 7% in the public bond market.
The remaining $9 billion of junior debt is expected to be offered to other investors in the coming months, potentially at lower yields, according to the report.
Credit rating challenge
The financing comes as investors grow increasingly cautious about the scale of spending and borrowing required to build AI infrastructure. Technology companies are seeking large amounts of capital to secure computing capacity, while lenders are demanding higher returns to compensate for the risks involved.
Anthropic had raised about $4.4 billion through a similar financing arrangement, known as Project Big Sky, just four months earlier, at an interest rate of 8.5%, the FT reported.
The latest deal also highlights the challenge facing the five-year-old AI company as it seeks to achieve an investment-grade credit rating. Anthropic received a rating one notch below investment grade from credit rating agency KBRA in June, while the latest junior debt is expected to receive a similar rating, according to the report.
The $60 billion package also includes about $42 billion in senior debt guaranteed by Broadcom, which works with Google on chip development. The debt could become tradable in the institutional bond market after the capital is drawn down in 2027.
Blackstone reportedly told its investment partners that the transaction offered an opportunity to earn high returns on debt linked to Anthropic, with the prospect of lower borrowing costs if the company eventually goes public and improves its credit standing.
Blackstone declined to comment, while Anthropic did not immediately respond to a request for comment, the FT reported.
