Apollo and Blackstone Just Closed a $35 Billion Private Credit Deal to Finance Anthropic's Compute Expansion. Here's What It Means for Micron and Nvidia.
The massive deal will affect the chipmakers differently.
Apollo and Blackstone Just Closed a $35 Billion Private Credit Deal to Finance Anthropic's Compute Expansion. Here's What It Means for Micron and Nvidia.
Overview
Two of the largest asset managers on Wall Street are rewriting the rules of AI infrastructure financing, and the deal they just made public is sure to have a substantial impact on the industry as a whole. What does it mean in particular for Micron (NASDAQ: MU) and Nvidia (NASDAQ: NVDA), two of the biggest winners of the AI build-out thus far?
Apollo Global Management (NYSE: APO) and Blackstone (NYSE: BX) finalized a $35 billion financing deal to aid Anthropic in its expansion efforts. The agreement is one of the largest private credit deals ever.
Details
The deal is structured using a Special Purpose Vehicle (SPV) to purchase Tensor Processing Units (TPUs) from Alphabet's Google. Those will then be leased to Anthropic. Through this structure, Anthropic will keep the hardware off its balance sheet. This will be a useful financial tool as Anthropic prepares for its initial public offering. Those TPUs will be deployed in data centers starting sometime this year and will expand Anthropic's compute capacity by 1 gigawatt (GW).
Source
Originally published at www.fool.com.
