Apollo and Blackstone Just Closed a $35 Billion Private Credit Deal to Finance Anthropic's Compute Expansion. Here's What It Means for Micron and Nvidia.
Key Points
The $35 billion will be used to facilitate Anthropic's data center capacity expansion.
As more money piles into the construction of AI infrastructure, demand for Micron's high-bandwidth memory increases.
- 10 stocks we like better than Micron Technology ›
Two of the largest asset managers on Wall Street are rewriting the rules of AI infrastructure financing, and the deal they just made public is sure to have a substantial impact on the industry as a whole. What does it mean in particular for Micron (NASDAQ: MU) and Nvidia (NASDAQ: NVDA), two of the biggest winners of the AI build-out thus far?
The money keeps pouring into AI
Apollo Global Management (NYSE: APO) and Blackstone (NYSE: BX) finalized a $35 billion financing deal to aid Anthropic in its expansion efforts. The agreement is one of the largest private credit deals ever.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The deal is structured using a Special Purpose Vehicle (SPV) to purchase Tensor Processing Units (TPUs) from Alphabet's Google. Those will then be leased to Anthropic. Through this structure, Anthropic will keep the hardware off its balance sheet. This will be a useful financial tool as Anthropic prepares for its initial public offering. Those TPUs will be deployed in data centers starting sometime this year and will expand Anthropic's compute capacity by 1 gigawatt (GW).
Broadcom is also an integral part of the deal and is providing a crucial credit endorsement through residual value guarantees for $30 billion in debt tranches. Apollo's Atlas SP Partners contributed an additional $800 million in equity.
Broadcom CEO Hock Tan explained that the company is building an "AI XPV platform" with Apollo, Blackstone, and other top investors to deploy over 20 GW of compute through 2028 for both Anthropic and OpenAI.
Image source: The Motley Fool.
Nvidia's making room at the top
This isn't a great deal for Nvidia. The entire agreement is built on Google TPUs, not Nvidia's GPUs. Anthropic is deepening its relationship with Google. Will this ruin Nvidia's dominance? Absolutely not, but it does carve out space for another winner.
Micron, on the other hand, could benefit tremendously. Regardless of which company's accelerators are providing the computing capacity, AI data centers can't operate effectively without scads of high-bandwidth memory. Micron is one of just three companies that can make it at scale. As the GPU versus TPU debate continues, Micron won't have to pick a side. It will supply memory to both. As such, this deal should be yet another boon for Micron's shareholders.
The AI build-out will require an additional $1.5 trillion in outside financing through 2028, according to Morgan Stanley. Private credit will undoubtedly play a major role. This Apollo and Blackstone deal is just the beginning and truly a template for what is to come in terms of innovative deal structures. Investors in companies such as Nvidia and Micron should take away two things: Competition among semiconductor companies is intense, and the demand for memory is only increasing.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,440!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,950!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 17, 2026.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Blackstone, Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
Recommended Articles
