AI investors or casino gamblers? What Broadcom CEO Hock Tan said that sparked sharp global AI selloff
The Economic Times
Broadcom CEO Hock Tan compared AI investors to casino gamblers, triggering a global AI stock selloff.Summary
Global AI stocks plunged after Broadcom CEO Hock Tan said many AI investors are behaving like casino gamblers, betting on things they barely understand. Speaking in Singapore, Tan warned that investors set extreme expectations without understanding the technology, and criticized companies for wasting money on AI. He questioned OpenAI's long-term profitability despite its $50 billion annualized revenue, noting it still loses money on training. Tan also said insufficient capital could constrain industry growth and that enterprises are wasting money on tokens while experimenting with AI. In response, South Korea's Kospi fell around 6%, Japan's Nikkei dropped nearly 2%, while Indian IT stocks rallied up to 5%.
(Source：The Economic Times)