Broadcom CEO Warns Capital is the Biggest Bottleneck for AI Development

Broadcom CEO Hock Tan stated at the DBS Asia Future Forward conference in Singapore that capital is replacing chips, storage, and power supply as the biggest constraint on the development of the AI industry. He pointed out that many AI investors lack understanding of the technologies they are betting on, yet expect high returns, likening their investment behavior to gambling. Tan cited OpenAI as an example, mentioning that the company's annualized revenue reached $50 billion in September, but high model training costs still keep it in a loss-making position, indicating that revenue growth does not mean the business model has been validated. He anticipates that the semiconductor shortage may improve between 2028 and 2029, and power supply is expected to gradually ease as new infrastructure comes online. Intel CEO Pat Gelsinger noted that rising financing costs and uncertainty in investment returns are becoming core challenges for the AI industry. Although both believe that demand for computing power will remain strong over the next two to three years, Tan warned that if the application progress of advanced AI models does not meet expectations, or if there are bottlenecks in model capability improvements, the demand for computing infrastructure may significantly slow down.

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