SINGAPORE, Oct 12 (Reuters) – Broadcom CEO Hock Tan said on Monday that capital will be the biggest constraint facing the company as AI development continues and likened some of the investment flow into the broader sector to “casino gambling”. • At a panel in Singapore on Monday, Tan said that the company is overcoming […]
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Broadcom CEO sees capital hurdle to AI growth, ‘casino’ in AI investing
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SINGAPORE, Oct 12 (Reuters) – Broadcom CEO Hock Tan said on Monday that capital will be the biggest constraint facing the company as AI development continues and likened some of the investment flow into the broader sector to “casino gambling”.
• At a panel in Singapore on Monday, Tan said that the company is overcoming wafer shortages and memory shortages, but capital will be the biggest constraint
• He added that frontier labs Anthropic and OpenAI have shown that they can generate significant revenue from the latest models that have been deployed for AI personal assistants
• “A lot of investors have no clue what they’re investing in, but set very extreme expectations, only to find out that it’s almost like they are in a casino gambling,” he said, when asked about the impact of cheaper AI models
(Reporting by Jun Yuan Yong; Editing by David Stanway and Christian Schmollinger)