Broadcom CEO: Many AI investors are like casino gamblers

According to Bloomberg, Hock Tan, CEO of chip company Broadcom, stated at an event in Singapore on Monday that the artificial intelligence craze has attracted a group of investors with strategies similar to gamblers, some of whom have little understanding of what they are betting on. He mentioned that many investors "don't even know what they are investing in," setting extremely high expectations, resulting in a situation that is "almost like being in a casino," and specifically pointed to the investment frenzy driven by a lack of understanding of cutting-edge large language models.

As the head of a company that designs key components for global data centers, Tan also questioned whether companies are wasting money on AI projects and the long-term economics of AI labs that are continuously losing money. He noted that ChatGPT developer OpenAI's annualized revenue reached $50 billion in September, indicating a viable model, but it does not guarantee long-term profitability; it is still losing money due to high training costs, and currently only suggests that cutting-edge generative models have significant potential revenue growth.

Tan also warned that a lack of capital could become the next constraint on industry growth. The Australia-based data center company Firmus Grid, supported by Nvidia, withdrew its planned $5.5 billion IPO last week. Before Tan's remarks, DBS Group CEO Tan Su Shan stated that after a large amount of investment, the market is re-pricing the risks associated with AI financing.