Broadcom $AVGO, Apollo, and Blackstone announced the establishment of the AI XPV Platform on Monday, launching with an initial $35 billion financing tranche led by Apollo, in partnership with Blackstone's Credit & Insurance Business.
The AI XPV Platform is designed to enable more than 20 gigawatts of compute capacity for frontier AI labs through 2028
Bloomberg / Getty Images
Broadcom $AVGO, Apollo, and Blackstone announced the establishment of the AI XPV Platform on Monday, launching with an initial $35 billion financing tranche led by Apollo, in partnership with Blackstone's Credit & Insurance Business.
The platform is designed to enable more than 20 gigawatts of compute capacity using Broadcom's XPUs and networking solutions for leading frontier AI labs, including Anthropic and OpenAI, through 2028. The initial transaction will facilitate Anthropic's previously announced expansion of more than 1 gigawatt of compute infrastructure, expected to deploy at Fluidstack-based sites beginning in mid-2026.
According to Bloomberg, the financing was divided into three separate tranches totaling $35 billion. Broadcom's backing of the two senior tranches — a $6 billion A1 note and a $24 billion A2 note — gave investors access to borrowing costs that reflected Broadcom's own creditworthiness. A1 notes carried a coupon of 1 percentage point above Treasuries, and the A2 notes settled at par carrying a 5.75% rate. The remaining $4.5 billion of B notes lacked any Broadcom guarantee and were issued at par with a coupon of 8.5%. Other investors absorbed approximately half of the total debt through syndication.
Apollo's Atlas SP Partners unit established the special-purpose vehicle at the center of the transaction, which acquired the chips using a combination of debt and equity before leasing them to Anthropic. Under a residual value support agreement, should Anthropic stop making lease payments and the proceeds from selling the chips prove insufficient to repay what is owed, Broadcom is obligated to cover the full outstanding balance for holders of the A1 and A2 notes.
Apollo described the transaction as the largest private financing ever executed. Apollo Partner Jamshid Ehsani called AI compute "one of the most compelling new asset classes in finance, characterized by contracted cash flows, mission-critical utility and a supply-demand dynamic that continues to intensify," in a statement.
Broadcom President and CEO Hock Tan said the platform "synchronizes the world's most sophisticated capital with Broadcom's advanced technological roadmap," in a statement. Apollo President Jim Zelter said the firm is "proud to deliver the capital foundation that allows this ecosystem to scale efficiently," in a statement. Blackstone President Jon Gray said the deal represents "an unprecedented opportunity to invest at scale across the AI infrastructure ecosystem," in a statement.
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