'Big Short' Michael Burry: Broadcom's $100 billion deal with Anthropic has hidden financial risks, won't buy A-company stock next week

BlockBeats news, November 11 — Michael Burry, the real-life inspiration behind "The Big Short," analyzed and pointed out that Broadcom's $161 billion hardware deal with Anthropic poses major hidden risks, as the agreement shifts part of the financial risk to insurance companies.

Specifically, Anthropic needs Broadcom's chips to run Claude, but it does not purchase these chips directly. Wall Street banks and Blackstone injected $63 billion into a separate company, which then purchased chips from Broadcom. That company subsequently leased the chips to Anthropic.

Over the entire lifecycle of these lease agreements, Anthropic will need to pay approximately $161 billion in rent for Broadcom's equipment. Part of the funding comes from Broadcom itself. Broadcom has agreed to provide Anthropic with up to $42 billion in loans, and these funds can only be used to pay rent for Broadcom equipment.

Michael Burry reiterated that he has no intention of buying Anthropic's stock when it goes public next week. "For the good of humanity, the market should fall sharply and stop the IPOs of OpenAI and Anthropic."

Previously reported, Michael Burry stated that Anthropic's IPO prospectus (S-1) "reveals catastrophic systemic fragility across the entire AI boom (not just Anthropic alone)." He believes Anthropic has a circular and interconnected financing structure: the supercomputing giant simultaneously plays multiple roles as Anthropic's "lender, supplier, distributor, and shareholder." Moreover, Anthropic's quarterly revenue growth rate dropped from approximately 144% in the previous quarter to approximately 46%, while computing costs surged significantly (approximately 78%).