Broadcom chief executive Hock Tan warned on 12 October that capital could become the biggest constraint on AI expansion, even as he said demand for compute infrastructure could exceed supply through 2029, CNBC reported. Tan spoke at the DBS Asia Future Forward Conference in Singapore. He said the demand imbalance might persist into 2030.
Intel chief executive Lip-Bu Tan also identified capital and its cost as challenges. He said investors would want to see returns over the longer term, although he considered a significant industry slowdown unlikely over the next two to three years, citing AI adoption and demand for computing power.
Hock Tan said shortages of memory chips could ease, and suggested wafer shortages might diminish by 2028 or 2029. He cautioned that demand for compute infrastructure could slow if adoption of advanced AI models disappointed or improvements in their capabilities plateaued. Lip-Bu Tan said companies would increasingly need to demonstrate returns from AI investment through improved efficiency and new business models.
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