The CEO's of Broadcom and Intel Say the Quiet Part Out Loud about AI and ROI
Broadcom and Intel CEOs say AI ROI and financing remain uncertain despite massive infrastructure spending.
At the DBS Asia Future Forward Conference, Broadcom CEO Hock Tan and Intel CEO Lip-Bu Tan said AI labs’ business models, enterprise ROI, and infrastructure financing remain uncertain. Tan compared many AI investors to casino gamblers and said OpenAI’s roughly $50 billion annualized revenue at the end of September does not prove a sustainable model given heavy operating costs and capital spending. He expects the compute buildout could continue into 2029 and possibly 2030, while both CEOs called capital the biggest constraint; SpaceX’s 10-year notes, issued at 5.875%, later traded at a 7.20% yield.
- Broadcom and Intel CEOs called AI ROI and lab business models uncertain.
- OpenAI’s about $50 billion annualized revenue still comes with large losses.
- Hock Tan said the AI buildout may run into 2029–2030, with financing the main constraint.
- SpaceX 10-year notes moved from a 5.875% coupon to a 7.20% yield.
From the original article
4 min read at wolfstreet.com“I think we’ve probably got everything wrong. It’s a good way, humble way to realize how little we really know about the technology we are creating.”
By metadat · wolfstreet.com
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