Broadcom CEO likens AI boom to a casino even as he targets $230 billion in chip sales
Broadcom CEO Hock Tan warns AI investors are gambling without understanding, even as he forecasts $230 billion in annual AI chip revenue by 2028.Summary
Speaking in Singapore, Broadcom CEO Hock Tan warned that many investors piling into artificial intelligence do not understand what they are buying, comparing the boom to a casino and saying investors had extreme expectations that made AI investing feel like gambling. He likened companies experimenting with AI to children quickly spending arcade tokens without learning anything, and questioned OpenAI’s long-term profitability despite its roughly $50 billion annualized revenue, citing high training costs.
The comments stand out because Broadcom is itself a major AI beneficiary; its AI semiconductor revenue tripled year-over-year to about $17 billion in the fiscal third quarter, with roughly $22 billion expected in the fourth quarter and forecasted growth from about $58 billion this fiscal year to $230 billion by fiscal 2028, partly relying on customers such as OpenAI and Anthropic. Tan said the industry’s biggest constraint may soon be access to capital rather than memory chip shortages, and Broadcom is increasingly involved in financing, including a $60 billion AI financing package tied to Anthropic’s lease of Google-designed chips, with $42 billion in senior loans supported by Broadcom’s credit rating. The remarks intensify the AI bubble debate, shifting focus from chip supply to credit and raising questions about customer profitability and Broadcom’s counterparty risk.
(Source：Forexlive)