Chip giant Broadcom has reached a $63 billion financing deal with Bank of America, Blackstone, Citibank, and Morgan Stanley to supply chips to developers of artificial intelligence (AI) models, Anthropic.

According to a joint statement released on Monday, this transaction will be completed through a newly established special purpose vehicle. Bank of America, Blackstone, Citibank, and Morgan Stanley will provide financing for the purchase of Broadcom chips, which will then be leased to Anthropic. Broadcom will provide support for part of the financing through what is known as “residual value support.”

This financing deal has received close attention from professionals on Wall Street and in Silicon Valley. Amidst growing concerns about the AI bubble, the market hopes to determine from this deal whether investors are still willing to provide funding for the expansion of AI's infrastructure. Broadcom aims to increase sales of chips and other data center equipment, and to compete with NVIDIA.

Tech giants continue to increase financing related to AI. Meta is seeking up to $95 billion in equity financing to support AI expenditures. SpaceX has signed a chip finance lease agreement worth approximately $40 billion with Apollo.

Castle Securities believes that the market's investment scale in AI trading has reached a point where there is almost no room for error. The co-Head of Investment at Castle Investments has also warned about the financing risks of AI, stating that "some ships will sink" under the tide.