🚨I’m getting a bit of a chill down my spine... The latest take from “The Big Short” investor Michael Burry: Broadcom’s $100 billion deal with Anthropic carries hidden financial risks, and he won’t buy its stock!
Burry’s analysis points out that Broadcom’s $161 billion hardware deal with Anthropic has major risks: the agreement shifts some of the financial risk to insurance companies.
According to Burry, Anthropic doesn’t buy Broadcom’s chips directly. Instead, banks and Blackstone provide $63 billion for another company to buy the chips and lease them to Anthropic. Anthropic will pay about $161 billion over the full lease term, while Broadcom has also agreed to lend it up to $42 billion specifically to cover those lease payments.
Put simply: the company selling the chips is also lending money to its customer so it can pay to use those very chips. If Anthropic can’t afford the lease payments, the risk could travel down this chain of financing to banks, investment firms, and even insurance companies.
Burry’s concerns aren’t limited to Anthropic—he questions the entire AI industry’s financing model of being a supplier, lender, and shareholder all at once. If this model blows up, it could very well trigger a terrifying chain reaction 🤯 #Anthropic拒绝延期IPO，本周路演估值几何？
Burry’s analysis points out that Broadcom’s $161 billion hardware deal with Anthropic has major risks: the agreement shifts some of the financial risk to insurance companies.
According to Burry, Anthropic doesn’t buy Broadcom’s chips directly. Instead, banks and Blackstone provide $63 billion for another company to buy the chips and lease them to Anthropic. Anthropic will pay about $161 billion over the full lease term, while Broadcom has also agreed to lend it up to $42 billion specifically to cover those lease payments.
Put simply: the company selling the chips is also lending money to its customer so it can pay to use those very chips. If Anthropic can’t afford the lease payments, the risk could travel down this chain of financing to banks, investment firms, and even insurance companies.
Burry’s concerns aren’t limited to Anthropic—he questions the entire AI industry’s financing model of being a supplier, lender, and shareholder all at once. If this model blows up, it could very well trigger a terrifying chain reaction 🤯 #Anthropic拒绝延期IPO，本周路演估值几何？
