Who bears the risk if leased chips are destroyed, who insures them and where do the proceeds go?
Risk of loss passes to the lessee as soon as title to a pod passes from Google to Broadcom. Broadcom insures the pods at the lessee’s cost against fire, theft, flood, earthquake and other risks, and is named insured and loss payee. Insurance and condemnation proceeds go against the rent still to come, in inverse order, unless the parties agree to replace the equipment. If the proceeds, alone or with a lessee payment, exceed the stipulated loss value, title passes to the lessee. Proceeds the lessee receives are held on trust for Broadcom.
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What the filed contracts say
Contract
What the filed wording says
Broadcom TPU lease to Anthropic
Risk passes to the lessee when title to a pod passes from Google to the lessor.
Broadcom TPU lease to Anthropic
The lessor insures the pods at the lessee’s expense and is insured and loss payee.
Broadcom TPU lease to Anthropic
Proceeds are credited against rent in inverse order, unless the equipment is replaced.
Broadcom TPU lease to Anthropic
If proceeds exceed the stipulated loss value, title transfers to the lessee.
Broadcom TPU lease to Anthropic
Proceeds the lessee receives are held on trust for the lessor.
The filed wording
Risk of loss and damage or other impairment of each Pod and the associated Equipment shall pass to Lessee automatically when title to such Pod transfers from Enso to Lessor as set forth in the Key Terms.
Broadcom master equipment lease of Google TPU8i pods to an Anthropic subsidiary, section 11.01 · Anthropic S-1/A, Exhibit 10.11
Each extract is quoted from the contract as filed with the SEC, checked against the filed text when it was added; “…” marks words left out. Filers redact commercial terms, so a [***] or [*] is the filer's, not ours. The summaries describe the wording, not how a court would read it, and each contract's defined terms and other clauses can change the effect. General information drawn from public filings. It is not legal advice on any transaction, and using this page does not create a lawyer-client relationship. Views are personal.
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