Broadcom CEO Says AI Revenue Targets Unchanged Despite Anthropic Slowdown Talk

Broadcom CEO Hock Tan said Monday that concerns about a possible slowdown in frontier AI model development have not caused him to rethink the chipmaker's revenue targets.

His comments followed a weekend essay by Anthropic CEO Dario Amodei calling for moderation in the pace of model development. The essay drew support from OpenAI CEO Sam Altman and Elon Musk and pushed investors in AI infrastructure providers to reassess their expectations for compute demand.

Broadcom shares fell 4.8%, and the iShares Semiconductor ETF dropped 5.6%. Other data-center component stocks also took hits. Anthropic is one of Broadcom's most important custom-chip customers.

Asked on CNBC's "Mad Money" whether the debate had made him reconsider Broadcom's AI semiconductor forecasts, Tan said, "No, not in the least." He said demand for compute infrastructure remains strong and durable.

Tan said he agrees with Amodei on the need for some AI restrictions, but he is less alarmed about where the technology is headed. "Like any tool, it's important to put governances, safeguards on how we use the tool," he said. "It's not a live animal that will run wild by itself."

Tan emphasized AI's potential to boost productivity, comparing it to the Industrial Revolution. "It is still at the end of the day a tool that will make our society, humanity, reach a better level of living," he said.

Source: CNBC