According to the Financial Times, which cited individuals familiar with the talks, Anthropic is pitching returns exceeding 10% to Blackstone to help bankroll a USD 60 billion artificial intelligence chip acquisition. Known as Project North Star, the proposed transaction would finance roughly 1.5 gigawatts of custom tensor processing units designed by Google, potentially setting a record as the largest chip financing deal ever made.
These terms emerge as lenders push for steeper returns on infrastructure debt while AI developers hunt for expanded computing muscle. The blueprint maps out two distinct debt tranches.
Blackstone Offered Double-Digit Returns on Junior Debt
People close to the matter anticipate that Blackstone-managed funds will supply USD 9 billion in junior debt, fulfilling half of the USD 18 billion junior financing requirement for Project North Star. This borrowing relies on Anthropic’s five-year chip lease payments as support.
The package features a 10% coupon, with fees and discounts pushing total investor yields past the 10% mark. By contrast, public bond markets typically price borrowers of comparable creditworthiness at a 7% yield, leaving the proposed coupon roughly three percentage points above the standard benchmark.
In the months ahead, Anthropic intends to present the remaining USD 9 billion of junior debt to outside investors, who may secure lower yields than Blackstone. This leaves a secondary segment of the capital stack awaiting commitments.
An approximate USD 42 billion senior debt portion rounds out the broader package. Broadcom, which collaborates with Google on chip development, is slated to guarantee this component. Combined, the senior and junior divisions constitute the USD 60 billion financing goal.
Project North Star Follows Earlier Anthropic Borrowing
This initiative succeeds Project Big Sky, a previous financing vehicle through which Anthropic secured approximately USD 4.4 billion four months prior at an 8.5% interest rate, making the new terms notably costlier.
This cost escalation reflects growing apprehension surrounding the massive capital allocations pouring into AI infrastructure. As companies require immense computing power, lenders are demanding heavier compensation for their risk. The latest terms highlight how these market pressures influence Anthropic’s financial arrangements.
Credit rating agency KBRA assigned Anthropic a rating one notch below investment grade back in June, and insiders anticipate the upcoming junior debt will receive a matching evaluation. Ultimately, Anthropic aims to achieve an investment-grade status to trim future borrowing expenses.
Whether Anthropic can successfully lower its borrowing costs while maintaining a massive influx of chip capacity remains to be seen, though Project North Star currently yields higher returns for investors than its predecessor.
Following drawdowns slated for 2027, the new securities could transition into the institutional 144A bond market, bringing market entry after the drawdown period rather than at the initial proposal stage.
Also Read: OpenAI Hires xAI Sales Executive as Anthropic Pushes AI Safety Bill
Anthropic Faces IPO Questions Over AI Safety
Aside from its capital-raising efforts, Anthropic faces pressure to postpone its initial public offering. On Wednesday, New York City Comptroller Mark Levine dispatched a letter to Chief Executive Officer Dario Amodei.
Levine pressed Anthropic to halt its market debut until the firm thoroughly and transparently tackles governance and AI safety issues. Furthermore, he dismissed last month’s safety agreement between AI enterprises and the Trump administration as inadequate.
Anthropic initiated dialogue with Levine earlier in the week. Speaking on Bloomberg Television Friday, Levine noted that the company confronts multifaceted pressure, though he refrained from detailing his direct talks with the organization.
Levine cautioned that a major AI safety failure following a public stock float could devastate Anthropic’s share price, arguing that taking extra time beforehand is safer than rushing ahead with unresolved vulnerabilities.
As comptroller, Levine manages municipal finances and public pension funds valued at over USD 325 billion. Because certain pension investments sit in index-tracking funds, Levine pointed out that these indexes would likely absorb Anthropic post-IPO, exposing the funds to potential risk.
Conclusion
Project North Star’s USD 60 billion framework provides Blackstone with junior debt returns surpassing 10%, with Broadcom backing the senior segment as Anthropic pursues a stronger credit profile. Simultaneously, New York City’s comptroller is urging an IPO postponement due to lingering governance and AI safety worries.
