Observed Signal · Apr 6, 2026 · Partnership · Source: CNBC Technology · Impact: 4/5 · Sentiment: Positive
Broadcom Expands AI Chip Deals with Google, Anthropic
Broadcom said it will produce future versions of AI chips for Google and signed an expanded agreement with Anthropic that gives the startup access to roughly 3.5 gigawatts of compute capacity using Google’s tensor processing units (TPUs). The deals were disclosed publicly and helped Broadcom shares jump more than 6% intraday. Analysts at Mizuho and Citi maintained buy ratings, with Mizuho saying the tighter TPU partnership strengthens Broadcom’s position. CEO Hock Tan has projected AI chip revenue in 2027 “significantly in excess of $100 billion.” Earlier estimates from filings and analyst commentary suggested Broadcom could capture tens of billions in AI-related revenue from customers like Anthropic as model builders continue to source diverse accelerator capacity.
Deals between a major chipmaker (Broadcom), a leading cloud/AI platform (Google) and a prominent model-builder (Anthropic) materially affect AI compute capacity, supply-chain dynamics and revenue flows for AI infrastructure — a strategic issue for the broader tech ecosystem.
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Key Takeaways & Evidence Grounding
- Broadcom will produce future versions of artificial-intelligence chips for Google.
- Broadcom signed an expanded deal with Anthropic giving it access to about 3.5 gigawatts of compute capacity drawn from Google’s TPUs.
- Broadcom shares rose more than 6% on the news (second-best day of the year for the stock).
- Analysts at Mizuho and Citi maintained buy ratings on Broadcom following the announcement.
- CEO Hock Tan projected AI chip revenue in 2027 that is "significantly in excess of $100 billion."
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Broadcom Provides Anthropic $42B for Chip Leasing
Broadcom will provide Anthropic up to $42 billion to lease its AI processors, as revealed in Anthropic's IPO prospectus. This makes Anthropic Broadcom's largest customer, contributing about a third of its AI revenue by 2027. Broadcom follows Nvidia's model of financing customers to boost sales. Anthropic has also booked computing capacity worth $125 billion over coming years. The deal involves convertible bonds, with potential conflicts of interest noted. Anthropic aims for a market valuation over $2 trillion at its Wall Street debut. In 2025, Anthropic's revenue grew twelvefold to $4.6 billion, but operating loss nearly doubled to $8 billion due to rising computing costs. The company plans to invest $518 billion in AI infrastructure, with 80% contractually committed.
Anthropic Expands Compute Deal with Google and Broadcom
Anthropic announced a new agreement with Google and Broadcom to increase processing and compute capacity for its Claude AI models, expanding its use of Google Cloud TPUs. The company said the additional capacity will come online in 2027 and did not detail specifics in the announcement, but a Broadcom SEC filing indicates the deal includes 3.5 gigawatts of compute. Anthropic framed the expansion as part of its $50 billion commitment to invest in U.S. compute infrastructure and said the majority of the new capacity will be housed in the U.S. The move follows an October 2025 agreement for more than a gigawatt of capacity, and Anthropic cited rapid growth—including a reported $30 billion Series G, a $380 billion valuation, and a $30 billion run-rate revenue figure.
Broadcom CEO Predicts AI Chip Revenue Surpassing $100 Billion
Broadcom CEO Hock Tan said on the company's fiscal first-quarter earnings call that he expects AI chip revenue in 2027 to be "significantly in excess of $100 billion," citing growing demand from large customers and secured supply-chain capacity. Broadcom reported that AI revenue for the quarter more than doubled year-over-year to $8.4 billion and total sales rose 29% to $19.3 billion; the company expects $10.2 billion in AI semiconductor revenue in the current quarter. Tan said Broadcom is helping six key customers design custom AI silicon — naming Google, Meta, Anthropic and OpenAI, with Fujitsu and ByteDance likely completing the group — and noted the company has secured the supply chain needed to hit its 2027 target. The call also referenced industry constraints such as high-bandwidth memory shortages and advanced manufacturing/packaging capacity limits.
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