# Broadcom, Nvidia and AMD spent one week underwriting the customers who buy their chips

URL: https://www.thedeepfeed.ai/posts/2026-10-27-chipmakers-underwrite-their-customers/
Category: Business
Published: 2026-10-27
Author: the-deep-feed
Tags: broadcom, nvidia, amd, anthropic, meta, nscale, financing, compute, infrastructure
Kind: news

> Between October 26 and 29, Broadcom backstopped up to $43 billion of a $63 billion vehicle that buys its chips for Anthropic, Nvidia and AMD put $4 billion into Meta's stock sale, and Nvidia was reported in talks to guarantee Nscale debt for an Anthropic site.

## TL;DR

- A new SPV will buy **Broadcom** XPU accelerators and lease them to **Anthropic** under a **$63 billion** financing. Broadcom's 8-K puts its maximum exposure at about **$43 billion**, undiscounted, if the racks fall short of **72.5%** of outstanding lease amounts.
- **Nvidia** ($3 billion) and **AMD** ($1 billion) are buying into Meta's stock sale, part of a non-binding **$5 billion** indication from Nvidia, AMD and Broadcom, as Meta expands its orders for both companies' hardware.
- Reuters, relaying The Information, reports Nvidia is in talks to guarantee **billions** in debt for Nscale's West Virginia site, which Anthropic plans to use. The deal 'has not been signed.'
- The three instruments differ, but each one moves the risk of AI demand falling short from the buyer to the chip supplier.

In the last week of October, three chip suppliers took on financial risk for the companies buying their hardware: Broadcom guaranteed the resale value of chips it will lease to Anthropic, Nvidia and AMD bought $4 billion of Meta's new stock, and Nvidia was reported in talks to guarantee a data-center builder's debt. In each case, if AI demand disappoints, part of the loss now lands on the supplier, not just the customer.

# Broadcom guarantees the value of its own racks

On October 26, Bank of America, Blackstone, Citi and Morgan Stanley [announced](https://newsroom.bankofamerica.com/content/newsroom/press-releases/2026/10/bank-of-america--blackstone--citi-and-morgan-stanley-announce-la.html) a $63 billion financing "to enable AI compute capacity in partnership with Broadcom." A newly formed special purpose vehicle buys Broadcom XPU accelerators and networking equipment and leases them to Anthropic. The three banks arrange the first-lien debt, Blackstone is the "sole provider of the committed portion of the second lien financing," and the release cites "expected deliveries starting in calendar 2027."

The clause that matters is short: "Broadcom is providing residual value support to the SPV for the amount equivalent to the first lien portion of the financing." Broadcom's [8-K](https://www.sec.gov/Archives/edgar/data/1730168/000119312526434271/d148323d8k.htm), filed October 27, spells out what that means. Broadcom covers any shortfall between 72.5% of outstanding lease amounts and the sale value of the racks, up to a maximum of about $43 billion undiscounted once the racks are deployed. The obligation grows as racks are delivered and shrinks as Anthropic makes lease payments. Broadcom calls the probability of paying "low." The filing names neither Anthropic nor the lenders.

[Reuters](https://www.khaleejtimes.com/business/wall-street-banks-blackstone-line-up-63-billion-to-finance-broadcom-ai-chips-for-anthropic), citing two people familiar with the deal, put the first-lien debt at about $43.5 billion, or 69% of the total. It also reported that Broadcom's backstop in an earlier $35 billion Apollo and Blackstone financing ran up to $29 billion, and that Moody's warned the risk rises if several such deals are done in a short period. According to the Wall Street Journal, as [relayed by Benzinga](https://www.aol.com/articles/banks-reportedly-got-cold-feet-052746000.html), some banks considered pulling out of the deal until Broadcom's Hock Tan held weekend talks and Broadcom agreed to higher interest rates and more comfort on its loss guarantee.

The economics are simple to state. The lenders are lending against GPU-class hardware whose resale value several years out nobody can price with confidence. Broadcom, the party that best understands that hardware and most wants it sold, has agreed to absorb the gap. Hock Tan framed the deal around demand: "Fundamentally, the need for AI compute continues to grow at an extraordinary pace."

# Nvidia and AMD buy into their customer

The same day, Meta [launched](https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Announces-Launch-of-Offering-of-Depositary-Shares-Representing-Series-A-Mandatory-Convertible-Preferred-Stock-and-Offering-of-Class-A-Common-Stock-in-Connection-with-Forward-Sale-Agreements/default.aspx) a stock sale. By [pricing](https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Announces-Pricing-of-Offering-of-Depositary-Shares-Representing-Series-A-Mandatory-Convertible-Preferred-Stock-and-Offering-of-Class-A-Common-Stock-in-Connection-with-Forward-Sale-Agreements/default.aspx), the Class A common stock offering had been "upsized to $25.0 billion" at $625 a share, alongside about $12.5 billion of mandatory convertible preferred depositary shares at a 6.50% dividend. Meta also plans a separate Class C at-the-market program of up to $60 billion, not expected before the first quarter of 2027. Headlines summing those to roughly $97.5 billion are adding money Meta has not yet raised.

Meta's launch release disclosed that Nvidia, AMD and Broadcom had "indicated an interest in purchasing up to an aggregate of $5.0 billion" of the common stock, which is not binding. Two of them then committed publicly. "NVIDIA will invest $3 billion in Meta's equity offering," Nvidia's [release](https://nvidianews.nvidia.com/news/nvidia-and-meta-to-expand-collaboration-on-muse-and-muse-family-of-models-amid-robust-growth) said, in an announcement about Meta deploying more Vera Rubin systems, Vera CPUs, Spectrum-X Ethernet and BlueField-4. On October 27, [AMD](https://newsroom.amd.com/news/amd-meta-advance-strategic-partnership-power-metas-ai-infrastructure/) said "AMD will invest $1 billion in Meta's equity offering," in a release announcing that its Helios racks are running at Meta and that Meta will deploy a custom Instinct GPU based on the MI450. Broadcom's share, if any, has not been disclosed.

Meta does not need $4 billion from its suppliers to fund a $25 billion offering. The investment matters as a signal. Two suppliers are now shareholders in a customer whose capital spending is their revenue, which gives them a direct financial stake in that spending continuing.

# Nvidia's reported guarantee for Nscale

The third item is not yet a deal. On October 29, [Reuters reported](https://kelo.com/2026/10/29/nvidia-in-talks-to-give-credit-support-for-nscales-deal-with-anthropic-the-information-reports/), citing The Information, that Nvidia is "in talks to offer AI cloud provider Nscale billions of dollars in credit" guarantees, supporting debt for power infrastructure and construction at Nscale's West Virginia data center, which Anthropic plans to use. Nvidia is already an investor in Nscale. "The deal has not been signed and terms could still change, the report said." None of the three companies commented. Reuters separately reported that Nscale is in talks to sell about 460 megawatts of computing power to Anthropic.

# Who carries the risk now

This publication [reported on October 16](/posts/2026-10-16-the-ai-money-wobbles/) that demand held through mid-October while the financing underneath it slipped, with CoreWeave bonds at distressed prices and a pulled Firmus IPO. The deals of October 26 to 29 are one response to that: when lenders and markets hesitate, the chip suppliers step in.

The three instruments are different. A residual-value guarantee pays out if hardware prices fall. An equity stake loses value if the customer's spending stops paying off. A credit guarantee pays out if the builder defaults. Each one moves part of the risk of AI demand falling short from the buyer to the supplier. Vendor financing is old and often sensible, because suppliers know their products. It also means supplier revenue and customer solvency are now more tightly linked. Moody's warning about several deals in a short period is the point to watch. The next disclosures to read are each supplier's footnotes on contingent liabilities, not its headline revenue.

## Sources

- [Bank of America Newsroom — BofA, Blackstone, Citi and Morgan Stanley announce $63 billion financing structure with Broadcom (Oct 26, 2026)](https://newsroom.bankofamerica.com/content/newsroom/press-releases/2026/10/bank-of-america--blackstone--citi-and-morgan-stanley-announce-la.html)
- [SEC — Broadcom Inc. Form 8-K, Item 2.03 (filed Oct 27, 2026)](https://www.sec.gov/Archives/edgar/data/1730168/000119312526434271/d148323d8k.htm)
- [Reuters via Khaleej Times — Wall Street banks, Blackstone line up $63 billion to finance Broadcom AI chips for Anthropic (Oct 27, 2026)](https://www.khaleejtimes.com/business/wall-street-banks-blackstone-line-up-63-billion-to-finance-broadcom-ai-chips-for-anthropic)
- [Benzinga via AOL — Banks reportedly got cold feet until Hock Tan stepped in (Oct 27, 2026)](https://www.aol.com/articles/banks-reportedly-got-cold-feet-052746000.html)
- [Meta Investor Relations — Meta announces launch of offering of depositary shares and Class A common stock (Oct 26, 2026)](https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Announces-Launch-of-Offering-of-Depositary-Shares-Representing-Series-A-Mandatory-Convertible-Preferred-Stock-and-Offering-of-Class-A-Common-Stock-in-Connection-with-Forward-Sale-Agreements/default.aspx)
- [Meta Investor Relations — Meta announces pricing of offering (Oct 26, 2026)](https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Announces-Pricing-of-Offering-of-Depositary-Shares-Representing-Series-A-Mandatory-Convertible-Preferred-Stock-and-Offering-of-Class-A-Common-Stock-in-Connection-with-Forward-Sale-Agreements/default.aspx)
- [NVIDIA Newsroom — NVIDIA and Meta to Expand Collaboration on Muse and Muse Family of Models (Oct 26, 2026)](https://nvidianews.nvidia.com/news/nvidia-and-meta-to-expand-collaboration-on-muse-and-muse-family-of-models-amid-robust-growth)
- [AMD Newsroom — AMD and Meta Advance Strategic Partnership to Power Meta's Superintelligence Infrastructure (Oct 27, 2026)](https://newsroom.amd.com/news/amd-meta-advance-strategic-partnership-power-metas-ai-infrastructure/)
- [Reuters via KELO — Nvidia in talks to give credit support for Nscale's deal with Anthropic, The Information reports (Oct 29, 2026)](https://kelo.com/2026/10/29/nvidia-in-talks-to-give-credit-support-for-nscales-deal-with-anthropic-the-information-reports/)

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