Business · Companies · 4 hrs ago
Intel and Broadcom CEOs warn financing could constrain AI growth
The CEOs of Intel and Broadcom warned at a conference in Singapore that finding money to build AI infrastructure could become a major challenge.
Companies are spending heavily on data centers, chips and power systems to meet rising demand for computing capacity.
Higher borrowing costs could make these projects more expensive, while their returns may take years to arrive.
Broadcom CEO Hock Tan said some supply shortages could ease as production and power infrastructure expand.
He said demand for computing infrastructure could exceed supply through 2029 and possibly into 2030.
Intel CEO Lip-Bu Tan said he did not expect a major slowdown in the next two to three years.
Longer-term growth will depend on how widely businesses adopt AI and whether it delivers clear economic benefits.
The chief executives of Intel and Broadcom warned that access to capital could constrain the expansion of artificial intelligence infrastructure.
Broadcom CEO Hock Tan said financing could become a bigger obstacle than shortages of chips, memory or electricity.
Intel CEO Lip-Bu Tan pointed to rising capital costs and questions about whether AI investments will deliver sufficient returns.
Both executives said demand for computing infrastructure exceeds supply and is unlikely to slow significantly in the next two to three years.
They said longer-term growth depends on AI adoption and whether the technology produces meaningful economic benefits.
- Who
- Intel CEO Lip-Bu Tan and Broadcom CEO Hock Tan.
- What
- They warned that financing and the cost of capital could constrain AI growth. Both said demand for computing infrastructure remains strong.
- When
- The remarks were made on Monday at the DBS Asia Future Forward Conference. The article was published October 12, 2026.
- Where
- Singapore.
- Why
- Building AI infrastructure requires substantial investment, and companies must show that AI investments will generate returns.
This story does not have two clearly opposing sides.
[What] I think might be the biggest constraint is capital
If there's any challenge in the front, it's capital and the cost of capital, and then the other part is in the longer run, people want to see the ROI
There is more demand for compute infrastructure than we can supply
Memory shortage today might not be that way a year from now
Hock Tan said the industry encountered a series of supply bottlenecks and overcame them.
Hock Tan and Lip-Bu Tan spoke about financing, demand and AI growth at the DBS Asia Future Forward Conference in Singapore.
Lip-Bu Tan said the industry was unlikely to experience a significant slowdown.
Hock Tan said the imbalance between demand and available computing infrastructure could persist.
- Conference
- DBS Asia Future Forward Conference
- Location
- Singapore
- Broadcom CEO
- Hock Tan
- Intel CEO
- Lip-Bu Tan
- Demand outlook
- Could exceed computing infrastructure supply through 2029 and potentially into 2030
- Possible wafer-shortage relief
- 2028 or 2029
Sources
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