Anthropic reportedly offers Blackstone over 10% yield on AI financing
Anthropic is reportedly pitching private equity firm Blackstone a yield above 10% on junior debt backing a $7 billion lease with Hut 8, which Google guarantees. The deal supports a Louisiana data center, and Anthropic has received a junk rating.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Anthropic is reportedly offering Blackstone a yield above 10% to help fund a large AI chip buildout. The financing is junior debt backing a $7 billion lease with Hut 8 that Google guarantees, for Anthropic's River Bend data center in Louisiana. Anthropic also received a junk rating, which has fueled wider debate about what its borrowing costs signal.
Why it matters
High borrowing costs are a strain for companies that burn cash.
Timeline
- Oct 17, 2:48 AM ET: Anthropic dangles a yield of 10% or more to Blackstone for chip-lease debt.
- Oct 17, 9:11 PM ET: A junk rating for Anthropic's debt sparks a broader debate over Treasuries and bitcoin as a hurdle rate.
Coverage
- Anthropic's Junk Rating Sparks a Bigger Bitcoin Debate (BeInCrypto)
- 3 AI Stocks With Earnings Growth Of Up To 98% (Yahoo News)
- Anthropic's Louisiana data center could generate $1.3 billion a month (Diego Almada Lopez)
- AI Compute Gets Pricier As Anthropic Reportedly Dangles 10% To Blackstone (yellow.com)
- Blackstone offered double-digit yield on Anthropic financing, FT reports (The FINANCIAL)
- Anthropic offers Blackstone a double-digit yield to fund its chip habit (startupfortune.com)
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