SINGAPORE — The chief executives of Intel and Broadcom warned that access to capital could emerge as a major constraint on the artificial intelligence boom, even as demand for computing infrastructure continues to outstrip supply.
Broadcom CEO Hock Tan said financing could become a bigger obstacle to AI expansion than shortages of semiconductors, memory chips or electricity, as the industry races to build the infrastructure needed to power increasingly sophisticated models.
"[What] I think might be the biggest constraint is capital," Hock Tan said at the DBS Asia Future Forward Conference in Singapore on Monday.
Intel CEO Lip-Bu Tan echoed concerns about financing, pointing to the rising cost of capital and questions over whether companies investing heavily in AI will eventually generate sufficient returns.
"If there's any challenge in the front, it's capital and the cost of capital, and then the other part is in the longer run, people want to see the ROI," he said.