Broadcom CEO says AI chip demand to outstrip supply for two years, OpenAI not overvalued
firstadopter · x · 2026-10-13
At DBS's Asia Future Forward conference, Broadcom CEO Hock Tan and Intel CEO Tan Lip Bu pushed back on AI bubble fears.
- Demand still outpaces supply: Tan said AI chip demand will keep beating supply for at least two more years; bottlenecks keep shifting—wafers, memory, power, land—but capital may be the biggest constraint.
- "Investors are gambling": On OpenAI raising US$30B at a US$1.4T valuation, Tan said it's not overvalued, but "a lot of investors have no clue what they're investing in… It's almost like they are in a casino." Per Business Times, the comment came amid investor disappointment over OpenAI's ARR—he argued US$50B annualized revenue is "by itself, not that bad" for a startup.
- XPUs and quantum: Tan Lip Bu said future AI infrastructure will mix heterogeneous chips ("XPUs") and quantum computers.
- If enterprise AI diffusion slows or frontier models stop improving exponentially, the boom could cool.
Related event: Broadcom, Intel CEOs and Schmidt Warn Capital Is AI's Biggest Bottleneck(3 posts)→
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