Key facts
- Wall Street banks are trading parts of a $35 billion financing package for Broadcom and Anthropic's AI infrastructure expansion.
- The deal represents the largest private credit transaction on record.
- Bank of America and Morgan Stanley are among the banks trading portions of the debt.
- These banks served as joint placement agents for a $24 billion tranche of the financing.
- The AI boom has significantly boosted capital markets revenue for major Wall Street banks.
- Anthropic is reportedly preparing for a potential IPO in October.
Wall Street banks have begun trading an initial portion of a $35 billion financing package designed to support the AI infrastructure expansion efforts of Broadcom Inc. and Anthropic PBC. This transaction marks the largest private credit deal on record and is now being made available to a broader group of investors.
Banks including Bank of America Corp. and Morgan Stanley have been actively trading parts of this debt over the past week. These institutions were among the joint placement agents responsible for a significant $24 billion tranche of the overall financing package.
The broader financial industry is experiencing a substantial uplift from the artificial intelligence boom, with major banks reporting record first-half revenues in 2026. This surge is attributed to stock trading, dealmaking, and financing activities directly linked to AI advancements. The five largest Wall Street banks collectively reported $114 billion in capital markets revenue during the first six months of 2026, a 31.5% increase from the previous year, with stock trading accounting for over half of this growth.
Analysts view AI as the primary earnings driver for big banks this year, comparing the capital demands from tech firms and related industries to a significant wave. While acknowledging potential risks, such as a slowdown in the AI boom, analysts do not anticipate a market wipeout in the near term. Executives have noted a 'risk-on' market environment, with some suggesting that current trading business performance is nearing its peak.
Morgan Stanley estimates that the ongoing AI build-out will necessitate approximately $10 trillion in spending over several years. As this cycle progresses, a greater portion of this investment is expected to flow into public debt, equity, and private credit markets beyond the direct cash flows of major tech companies. The market is considered to be in the early stages of this investment cycle.
Further fueling the AI-driven market activity, Anthropic is reportedly meeting with investors in anticipation of a potential public offering in October, working with Morgan Stanley, Goldman Sachs, and JPMorgan. Rival AI firm OpenAI also has plans to go public at a later date. However, the expectation of continued deal flow comes with inherent risks, including the possibility of technology investment outpacing adoption and potential misallocation of capital in the pursuit of market dominance.