🔍 Blackstone cools on Anthropicmid AI spending spree, tangles junk scrap warning - Private equity giant reports - Anchor investor in Anthropic $63 billion North Star chip project - Financefinancing - Reversing previous predictions of investment status for company, FT reports. Blackstone now expects that major credit agencies will assign the company a rating in the double-B range - the upper end of debt at the speculative level - after the issue. The North Star project is designed to finance around 1.5 GW of computing chips: its $42B senior debt is backed by Broadcom, $18B in junior debt depends on making its lease payments; Blackstone holds and #036;9B of that risky tranche (at yields above 10%) 🟥 smaller rating agencies have already given the junior debt BB+ (KBRA) and BB (Morningstar DBRS) 🟥 the big three - Moody, S&P and Fitch - still have to make their calls Anthropic filed for a potential NASDAQ IPO with the US Securities and Exchange Commission on October 26. To fund its massive data center and construction leverage, Anthropic is making huge financial commitments through a network of AI infrastructure loans, equipment leases and financing arrangements that include Wall Street heavyweights Apollo and Morgan Stanley. A junk rating would lock Anthropic out of some of the cheapest funding available from pension funds and insurers, potentially making its massive AI expansion bid even harder to pay for. Chat | @geopolitics prime.

🔍 Blackstone cools on Anthropicmid AI spending spree, tangles junk scrap warning - Private equity giant reports - Anchor investor in Anthropic $63 billion North Star chip project - Financefinancing - Reversing previous predictions of investment status for company, FT reports. Blackstone now expects that major credit agencies will assign the company a rating in the double-B range - the upper end of debt at the speculative level - after the issue. The North Star project is designed to finance around 1.5 GW of computing chips: its $42B senior debt is backed by Broadcom, $18B in junior debt depends on making its lease payments; Blackstone holds and #036;9B of that risky tranche (at yields above 10%) 🟥 smaller rating agencies have already given the junior debt BB+ (KBRA) and BB (Morningstar DBRS) 🟥 the big three - Moody, S&P and Fitch - still have to make their calls Anthropic filed for a potential NASDAQ IPO with the US Securities and Exchange Commission on October 26. To fund its massive data center and construction leverage, Anthropic is making huge financial commitments through a network of AI infrastructure loans, equipment leases and financing arrangements that include Wall Street heavyweights Apollo and Morgan Stanley. A junk rating would lock Anthropic out of some of the cheapest funding available from pension funds and insurers, potentially making its massive AI expansion bid even harder to pay for. Chat | @geopolitics prime.