Broadcom has agreed to provide Anthropic with up to $42 billion for AI infrastructure investments through convertible bonds that could later be exchanged for Anthropic shares. The commitment would support roughly one-third of Anthropic’s planned $125.2 billion spending over five years to lease Google Tensor Processing Unit, or TPU, computing capacity. Broadcom co-develops TPUs with Google, placing it in the dual role of hardware supplier and financial backer to a customer using the processors. Anthropic said in its IPO investment memorandum that this arrangement could create conflicts of interest because Broadcom’s hardware supply and pricing decisions could affect Anthropic’s access to sufficient computing capacity. Anthropic does not expect the convertible bonds to be sold before its IPO concludes, and Broadcom may appoint another financial institution to jointly raise the funds. The arrangement adds to broader Wall Street scrutiny of circular financing in AI, in which chip suppliers support customers that then purchase or lease infrastructure using those suppliers’ technology. Broadcom’s financing sits alongside a proposed broader $60 billion AI infrastructure package involving $42 billion of senior secured debt and $18 billion of subordinated debt led by Blackstone. Anthropic plans to expand its collaboration with Google and Broadcom for several gigawatts of next-generation TPU capacity beginning in 2027.