Broadcom CEO addresses Anthropic's slowdown push, says AI revenue targets haven't changed
Broadcom CEO Hock Tan said demand for AI infrastructure remains strong despite growing concerns about increasingly powerful models.
TL;DR
- Broadcom CEO Hock Tan remains confident in the company's long-term AI revenue targets, dismissing concerns about a potential slowdown in AI model development.
- Investor worries were heightened by Anthropic CEO Dario Amodei's call for moderated AI development pace, supported by OpenAI and Elon Musk.
- Broadcom's stock experienced a decline, as did other semiconductor and data-center component stocks, following these discussions.
- Tan predicts continued strong and durable demand for AI compute infrastructure, including inference, and reaffirms substantial revenue growth forecasts for 2027 and 2028.
- Anthropic is projected to become Broadcom's largest custom chip customer in 2027 and 2028.
- Tan agrees on the need for AI governance but views AI as a tool rather than an uncontrollable force, highlighting its potential to boost productivity and societal well-being.