Apollo and Blackstone’s $35 Billion Deal for Anthropic: Implications for Micron and Nvidia

Key Points

Apollo Global Management (NYSE: APO) and Blackstone (NYSE: BX) have finalized a $35 billion financing deal aimed at enhancing Anthropic’s expansion efforts, marking one of the largest private credit deals in history. This agreement involves the acquisition of Tensor Processing Units (TPUs) from Google’s Alphabet, which will be leased to Anthropic while keeping the hardware off its balance sheet as the company prepares for its initial public offering.

As part of this deal, Anthropic’s computing capacity will increase by 1 gigawatt (GW), with deployment in data centers set for later this year. Broadcom is also involved, providing credit endorsements for $30 billion in debt tranches and contributing an additional $800 million in equity through Apollo’s Atlas SP Partners. This funding is part of a broader trend, with the AI sector projected to require an additional $1.5 trillion in funding through 2028, according to Morgan Stanley.

While the deal favors Google TPUs over Nvidia GPUs, it presents a significant opportunity for Micron (NASDAQ: MU), which remains one of the few companies able to supply high-bandwidth memory essential for AI data centers, regardless of the computing architecture employed.