AVGO · Broadcom Inc.

Broadcom has secured significant long-term commitments from Google, a major hyperscaler, through two key agreements that position the company as a critical supplier in Google's AI infrastructure roadmap. The Long Term Agreement focuses on custom Tensor Processing Units (TPUs), Google's proprietary AI accelerators, for future generations, while the Supply Assurance Agreement guarantees Broadcom's provision of networking and other components for next-generation AI racks extending through 2031. This multi-year horizon provides revenue visibility and strengthens Broadcom's role in high-margin custom silicon and networking for AI data centers. Separately, the expanded collaboration with Google and Anthropic introduces a novel compute capacity arrangement, where Anthropic gains access to 3.5 gigawatts of next-generation TPU-based AI compute via Broadcom starting in 2027. This scales up prior commitments to multiple gigawatts, though utilization hinges on Anthropic's commercial performance, introducing some execution risk. Ongoing discussions with operational and financial partners signal progress toward deployment. For investors, these deals underscore Broadcom's entrenched position in AI supply chains, diversifying beyond standard semiconductors into hyperscaler-specific solutions with substantial scale.