Broadcom CEO Warns AI Spending May Outpace Business Returns

Broadcom CEO Hock Tan warned that companies adopting generative artificial intelligence have yet to show whether the tools deliver enough productivity gains to justify their costs, while access to capital may limit the industry’s expansion. At a Singapore conference on Oct. 12, Tan said some investors have high expectations for AI businesses without fully understanding the technology they are backing. He compared that behavior to gambling. Tan also likened corporate AI spending to giving a child $10 in arcade tokens that are used up in 10 minutes without the child learning anything.

Source: TokenPost