By Rich Duprey
Publication Date: 2026-10-29 14:57:00
When Broadcom agreed to backstop the value of its own chips inside a $63 billion AI financing deal, four of Wall Street’s biggest names quietly transferred a risk that could eventually reach retirement portfolios and insurance policyholders far outside Silicon…
$63 Billion Puts a Price on AI Hardware Risk
$63 billion. That is the size of the financing structure that Blackstone (NYSE:BX | BX Price Prediction), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Morgan Stanley (NYSE:MS) announced on October 26, 2026. The money buys AI computing equipment from Broadcom (NASDAQ:AVGO) and rents it to Anthropic. The deal size catches the headline. The detail inside it deserves more attention from long-term investors: the financing runs through a special-purpose vehicle, and Broadcom will provide residual-value support equivalent to the first-lien financing portion.
Put simply, the company selling the chips is helping guarantee what those chips will be worth later.