Business · Companies · 38 mins ago
Broadcom and Intel CEOs warn funding could limit AI growth
Broadcom CEO Hock Tan and Intel CEO Lip-Bu Tan said at a conference in Singapore that finding money for AI infrastructure could become the biggest limit on the industry.
AI demand currently exceeds the supply of computing infrastructure, but they said shortages of memory, chip-making capacity and electricity may ease over time.
Hock Tan said the gap between demand and supply could last until 2029 or 2030.
Both executives said rising financing costs and investors’ demands for returns could make expensive data centers and advanced chips harder to fund.
AI projects can take years to become profitable, so higher costs could weaken their business case.
The CEOs expect demand for computing power to remain strong over the next few years, but said longer-term growth depends on companies showing that AI brings real benefits and profits.
They warned that if new AI models do not meet expectations or improve performance, demand for computing infrastructure could fall.
Broadcom and Intel chief executives warned that funding could become the biggest constraint on artificial intelligence growth.
They said rising capital costs and investor demands for returns could make AI infrastructure projects harder to finance.
Both executives said near-term demand for AI computing infrastructure remains strong.
They said longer-term growth will depend on companies demonstrating tangible returns from AI investments.
- Who
- Broadcom CEO Hock Tan and Intel CEO Lip-Bu Tan.
- What
- They warned that funding and rising capital costs could limit AI growth.
- When
- They spoke on October 12, local time.
- Where
- At the DBS Asia Future Forward conference in Singapore.
- Why
- Building data centres and buying advanced chips is costly, while investors want to see returns on their investments.
This story does not have two clearly opposing sides.
Hock Tan said bottlenecks had occurred several times but had been overcome.
The Broadcom and Intel CEOs spoke at the DBS Asia Future Forward conference in Singapore.
Lip-Bu Tan forecast no sharp slowdown, citing demand for computing power and wider adoption of AI applications.
Hock Tan said the imbalance between demand for and supply of AI computing infrastructure could persist until this period.
- Broadcom CEO
- Hock Tan
- Intel CEO
- Lip-Bu Tan
- Conference
- DBS Asia Future Forward, Singapore
- Demand imbalance
- Could continue until 2029 to 2030
What people are saying
My view is that the biggest constraint could be capital.
If there is an urgent task ahead, it is capital and the rise in the cost of capital.
Short-term demand for AI computing infrastructure is so strong that supply cannot keep up, and this imbalance will continue until 2029 to 2030.
Sources
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