Kirkland Advises Blackstone on $63 Billion Landmark Financing Structure to Enable AI Compute Capacity in Partnership with Broadcom
Kirkland & Ellis is advising Blackstone (NYSE: BX) as lead financial partner, alongside Bank of America (NYSE: BAC), Citi (NYSE: C) and Morgan Stanley (NYSE: MS), in a $63 billion transaction to enable the deployment of AI compute capacity, leveraging Broadcom Inc.'s (Nasdaq: AVGO) technology, for Anthropic. This transaction is part of the strategic compute capacity agreement previously announced by Broadcom, with expected deliveries starting in calendar 2027.
The transaction will be executed through a newly formed special purpose vehicle (SPV) with committed financing from the lead financial partners to support the purchase of Broadcom XPU AI accelerators and networking solutions to be leased to Anthropic. The first lien portion of the financing is being arranged by Bank of America, Citi and Morgan Stanley, with Blackstone as the sole provider of the committed portion of the second lien financing. Broadcom is providing residual value support to the SPV for the amount equivalent to the first lien portion of the financing. This transaction highlights the deep collaboration across the AI technology and financial ecosystems.
Read the transaction press release
The Kirkland team includes complex securitizations lawyer Michael Urschel; hybrid capital solutions lawyers Mike Marek and John Pitts; debt finance lawyers Lucas Spivey, Jordan Roberts, Tad Bardenwerper, Darren Littlejohn, Charles Martin, Thomas Prommer, Agustin Paniagua, Brooke Brimo, Aaqib Mahmood, Jessica Monahan and Anu Reddy; corporate lawyers Drew Clements, Kemal Hawa, Chris Turek, Sam Zeliff and Fiona Feng; and investment funds lawyer Constantina Leodis.
Kirkland brings together market-leading capabilities across M&A, finance, tax, restructuring and regulatory matters to design bespoke capital solutions for transformative AI and digital infrastructure transactions. The Firm combines unmatched experience across high-grade capital, structured finance, preferred equity, private credit and other hybrid products, deep asset-level experience and insights across its industry-leading platform to develop commercially viable structures to advance clients’ strategic objectives.
