The chief executives of Intel and Broadcom warned that access to capital could become a major constraint on the AI boom. Both still see demand for computing infrastructure outrunning supply. Their longer-term outlook depends on whether businesses adopt AI and see returns.
Broadcom CEO Hock Tan said financing could become a bigger obstacle to AI expansion than shortages of semiconductors, memory chips or electricity. He spoke at the DBS Asia Future Forward Conference in Singapore on Monday.
Intel CEO Lip-Bu Tan echoed the concern, pointing to the rising cost of capital and questions over whether companies investing heavily in AI will eventually generate sufficient returns.
Borrowing costs add pressure
The warnings come as rising borrowing costs threaten to complicate financing for technology companies building AI infrastructure. Higher bond yields could make data center construction and chip purchases more expensive to fund, potentially pressuring projects that may take years to generate returns.
Demand still outpaces supply
Despite the financing concerns, both executives remained bullish on near-term demand. According to CNBC, Hock Tan said: "There is more demand for compute infrastructure than we can supply." He added that the imbalance could persist through 2029 and potentially into 2030.
Intel's Tan similarly said the industry was unlikely to see a significant slowdown over the next two to three years, citing growing adoption of AI applications and demand for computing power.
Beyond that, the executives said growth depends on how quickly businesses adopt AI and whether the technology delivers meaningful economic benefits. Broadcom's Tan cautioned that demand could slow if adoption of advanced AI models disappoints or if improvements in their capabilities plateau.
Source: CNBC
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