Broadcom CEO addresses Anthropic's slowdown push, says AI revenue targets haven't changed — SkimNews
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- Broadcom CEO Hock Tan dismissed concerns that a potential AI development slowdown would dent chip demand, reaffirming long-term revenue targets on CNBC's "Mad Money" Monday.
- Broadcom shares fell 4.8% Monday and the iShares Semiconductor ETF dropped 5.6%, as investors reacted to Anthropic CEO Dario Amodei's weekend essay calling for moderation in AI model development pace.
- Anthropic is on track to become Broadcom's largest custom-chip customer in 2027 and 2028, overtaking Google, which historically co-designed tensor processing units with Broadcom.
- Broadcom forecast AI semiconductor revenue of $115 billion in fiscal 2027, doubling to $230 billion in fiscal 2028, on its Sept. 2 earnings call.
- Tan said he sees inference demand as "very, very strong" while expressing less certainty about training demand.
- Tan agreed with Amodei on AI governance safeguards but rejected doomsday framings, calling AI "not a live animal that will run wild by itself" and likening generative AI to the 18th-century Industrial Revolution.
Why it matters: The core tension is that Broadcom's bullish $115B-to-$230B AI revenue path through fiscal 2028 now depends heavily on Anthropic — not Google — as its fastest-growing custom-chip customer, even as Anthropic's CEO publicly advocates slowing frontier AI development. Investors sold Broadcom down 4.8% Monday on that contradiction while Tan insisted on CNBC that compute demand remains "very durable."
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