00:00Apollo and Blackstone have finalized a $35 billion financing package for Anthropic to expand its AI infrastructure, marking one of
00:09the biggest private credit deals in history.
00:12Joining us now with the latest is Bloomberg's Emily Grafeo.
00:14And Emily, this is so fascinating as we talk on the one hand about redemptions and pulling down the gates.
00:20On the other hand, we have the biggest private credit deal of all time.
00:22Yeah, that's right. And this is an investment grade private credit deal.
00:25It's something that Mark Rowan has talked about a lot, that they're trying to get more into this.
00:29You can see that the rating on the A1 and the A2 tranche of this deal is investment grade.
00:36It's backstopped by Broadcom, which is an IG company, which gave it this IG rating.
00:42But yeah, it's one of the biggest private credit deals out there, $36 billion.
00:47And if you zoom out, it's all because Anthropic needs a ton of money to buy a ton of TPUs
00:56to do all of the AI that they basically want to do.
00:59I find it so interesting because Blackstone and Apollo are selling debt to help Anthropic by Google TPUs, which are
01:10made by Broadcom.
01:11And Broadcom is then backstopping that debt.
01:14So it's the circular financing story alive and well.
01:18It totally is. The deal basically wouldn't have got done, you can pretty much assume, if they didn't have this
01:25Broadcom backstop.
01:26Because again, this is investment grade debt. This is being sold to institutional investors.
01:30They want some type of protection here.
01:33Broadcom basically had to give this guarantee because if it didn't get done,
01:38then they would have missed out on a lot of revenue from a big sale of $36 billion of chips.
01:45So yeah, they basically needed that circularity.
01:47By the way, this is about one gigawatt of compute power.
01:51And by my rough estimate, that's about a million TPUs.
01:55We just had a story on Monday that Google is going to have Intel make three million TPUs.
02:02Yeah, it's interesting because I feel like a few months ago it was all data centers.
02:06And we were talking about all the massive money that needs to be raised to build a data center
02:11and make the construction happen to build this.
02:15But actually, it's even more expensive to buy the infrastructure that goes inside the data center
02:20to actually power the AI.
02:22But the deal is fairly similar to the Beignet deal that Meta had participated in just a few months ago.
02:28Okay, let's take a look.
02:28So, let's take a look.
02:29You
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