Anthropic offers Blackstone over 10% yield for $60B chip financing
AI Anthropic is making big moves, offering Blackstone a yield of more than 10% to help finance $60 billion worth of Google's custom AI chips.
Dubbed Project North Star, this is touted to be the largest chip-financing arrangement to date and shows just how expensive building next-generation AI tech has become.
Blackstone to invest $9B junior debt
Blackstone-managed funds are expected to invest $9 billion as part of $18 billion in junior debt, secured by Anthropic's lease payments over 5 years, a pretty bold bet with a much higher payout than typical bonds.
There is also $42 billion in senior debt backed by Broadcom, highlighting how serious (and costly) the race for AI power has gotten.
Anthropic is working on improving its credit rating too, hoping that will make future borrowing less expensive as demand for AI infrastructure keeps surging.