AVGO · News · 20261013N

AI Infrastructure Investment Outlook

Broadcom Inc. · 2026-10-13 · Importance 17 · Surprise 24

Broadcom CEO Hock Tan said OpenAI had reached a $50 billion annualized revenue run rate as of September 2026, but remained unprofitable because of heavy model-training and computing expenditures. Tan cautioned that the revenue run rate provides limited visibility into OpenAI’s long-term profitability and questioned the sustainability of current AI demand. He also warned that capital availability, rather than chip supply, could become the next major constraint on AI infrastructure investment, highlighting financing risk for downstream custom-chip customers.

Key facts

• Broadcom CEO Hock Tan said OpenAI’s $50B annualized revenue as of September points to a viable business. source
• Broadcom CEO Hock Tan warned that a capital shortage, rather than chip supply, could become the next major constraint for the AI industry. source
• Broadcom CEO Hock Tan likened investors speculating on AI to "a casino" and said "A lot of investors have no clue what they are investing in." source