Intel and Broadcom CEOs cite AI costs and returns

Intel CEO Lip-Bu Tan and Broadcom CEO Hock Tan said capital costs and the need to demonstrate returns are central challenges for the artificial intelligence industry, as they discussed hardware supply, enterprise adoption and emerging technologies at a Singapore conference on October 12. Lip-Bu Tan said capital and its cost were major constraints on AI development, and that investors would ultimately want to see a return on investment. His comments came as companies continue to invest heavily in computing infrastructure and AI models. The executives’ assessments were views expressed at the conference, rather than confirmed forecasts of how the market will develop. Hock Tan said shortages of AI hardware could ease by 2028 or 2029, while demand for computing capacity could remain ahead of supply into 2030. Lip-Bu Tan separately estimated that hardware shortages could last another two to three years. The remarks describe different executive outlooks and timelines for supply constraints. The Broadcom chief also questioned whether many businesses have found practical AI applications that justify their spending.