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Broadcom to lend Anthropic up to $42 billion in chip leasing deal

Original: Broadcom to lend Anthropic up to $42 billion to lease chips, in latest circular investing deal

Broadcom has agreed to lend Anthropic up to $42 billion, which the AI company will use to lease Broadcom chips, according to Yahoo Finance. The deal is being described as another example of circular investing, in which chipmakers finance their customers' purchases of their own hardware. The arrangement adds to a series of similar financing deals between AI developers and semiconductor suppliers, raising questions among observers about the sustainability of vendor-funded AI expansion.

Why now: It is the latest in a wave of circular financing deals between AI companies and chipmakers, prompting debate about risk in the AI boom.

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