Broadcom CEO Hock Tan and Intel CEO Lip-Bu Tan stated at the DBS Asia Future Forward Conference in Singapore on October 12, 2026, that rising capital costs may replace hardware shortages as the primary barrier to AI infrastructure growth.
Despite shifting constraints, demand for computing infrastructure is expected to outpace supply until at least 2029 or 2030. Executives noted that previous bottlenecks in power, memory, and wafers have eased over the past two years, with further improvements in wafer capacity projected for 2028-2029.
Broadcom has launched a $35 billion financing platform in partnership with Apollo and Blackstone to support over 20 gigawatts of AI capacity by 2028. Similar trends are emerging across the industry, with reports of potential debt financing reaching $50 billion for OpenAI and $42 billion for Anthropic.
Both CEOs emphasized that investors will ultimately require returns on their capital. Future market developments will depend on the deployment of the Broadcom-led platform, the outcome of debt negotiations for major AI firms, and whether other hardware suppliers adopt similar financing models.
