The remarks contributed to a global chip stock sell-off, with Samsung falling as much as 8.8%, SK Hynix sliding 9.2%, and Micron dropping 4%. Intel CEO Lip-Bu Tan agreed that capital costs are a front-line challenge, though he noted that hardware will remain in short supply for the next 2 to 3 years. Despite the funding risks, Broadcom projects its AI chip revenue will double to $230 billion by 2028, while ex-Google CEO Eric Schmidt noted that the U.S. capital markets are uniquely equipped to handle the trillion-dollar costs of the AI buildout.
Tuesday, October 20, 2026
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Broadcom Lends Anthropic $42B to Offset AI Funding Shortage
AI8 days ago
Hock Tan believes that the availability of cash will soon be the primary constraint on the development of advanced neural networks. While speaking at an event in Singapore, the Broadcom chief executive stated that access to capital, rather than chip or memory shortages, could become the industry's main growth bottleneck. Broadcom is already attempting to mitigate these constraints by backing a debt package of up to $42 billion for Anthropic to fund the leasing of AI semiconductors, even as Tan cautioned that many current investors are betting like they are in a casino.
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