Anthropic attracts Blackstone with over 10% yield for $60B chip financing, plans massive IPO

US AI company Anthropic is offering returns of over 10% to attract Blackstone to fund its chip deals. The $60 billion debt deal has two parts: about $42 billion in senior debt backed by chipmaker Broadcom, plus $18 billion in subordinated debt.

Blackstone's fund will put $9 billion into the subordinated debt at a 10% coupon, and the total return is even higher after discounts and fees. Bank of America, Citigroup, and Morgan Stanley have started selling the senior debt.

Just four months ago, Anthropic issued about $4.4 billion in debt at an 8.5% yield. The higher borrowing costs show investors now want a bigger risk premium for AI infrastructure financing.

Anthropic is planning one of the biggest IPOs ever, using a Public Benefit Corporation structure. About 20% of its shares will go to public purposes, and its IPO filing warns its AI models may show 'self-protective behavior'.