Broadcom and Intel CEOs Warn Capital Costs May Limit AI

Broadcom CEO Hock Tan and Intel CEO Lip-Bu Tan warned that access to capital and rising financing costs could become the primary bottlenecks for the expansion of artificial intelligence. Speaking at the DBS Asia Future Forward Conference in Singapore on Monday, Hock Tan stated that capital may prove to be a larger obstacle than previous shortages of semiconductors, memory chips, or electricity.

Hock Tan expects supply constraints for wafers and memory to ease by 2028 or 2029, though he believes demand for computing infrastructure will outstrip supply through 2030. Lip-Bu Tan echoed these concerns, noting that the industry must eventually demonstrate a clear return on investment to sustain growth.

Both executives remain bullish on near-term demand. However, they cautioned that long-term success depends on the actual economic benefits delivered by AI and the continued adoption of advanced models by businesses.