yardy

🦔Anthropic is offering Blackstone a yield of more than 10% to anchor a $9 billion junior piece of a $60 billion chip-financing package, the FT reports. Broadcom arranged the deal and stands behind the $42 billion senior slice. Separately, Broadcom agreed to lend Anthropic up to $42 billion through notes that can convert into Anthropic stock. All of it helps pay for Anthropic’s $125.2 billion, five-year commitment to lease Google’s TPUs. My Take That 10% is the best look so far at what lenders charge Anthropic without Broadcom’s help. The Broadcom-backed senior debt in June’s deal priced around 5.75%, so lenders want nearly double once Broadcom isn’t covering them. CoreWeave’s bonds yield over 16% right now, so Anthropic still looks a lot safer to lenders than that, just nowhere near investment grade. The lease bill averages about $25 billion a year. Anthropic’s best quarter so far brought in $16.8 billion, so even at that pace more than a third of its revenue would go to renting chips before salaries and everything else. If those Broadcom notes convert, Broadcom ends up paid in Anthropic stock instead of cash, the same supplier-funds-its-customer setup Nvidia has with CoreWeave. We probably see a couple more of these deals before the IPO, each one priced a little higher than the last. Hedgie🤗