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Broadcom to lend Anthropic up to $42 billion for chip leases

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, with the AI company using the funds to lease Broadcom chips. The arrangement is drawing attention as the latest example of 'circular' deals in the AI industry, where chipmakers finance their own customers' purchases, raising questions about how much of the sector's booming revenue reflects genuine end-market demand.

Why now: It adds to ongoing debate about circular financing deals inflating AI industry valuations and demand.

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