{
  "id": 13991171,
  "title": "‘Wasting money, spending tokens’: Companies still in search of AI use cases with worthwhile ROI, says Broadcom’s Hock Tan",
  "url": "https://urgent.news/2026/10/12/wasting-money-spending-tokens-companies-still-in-search-of-ai-use",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-12T15:37:37.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/wasting-money-spending-tokens-companies-still-search-ai-use-cases-worthwhile-roi-says-broadcoms-hock"
  },
  "original_language": "en",
  "account": "Both Broadcom CEO Hock Tan and Intel CEO Tan Lip-Bu suggest that capital could be AI's biggest obstacle, as many companies are still seeking use cases for artificial intelligence that generate a return on investment. While these companies have adopted AI in some form, their current applications of generative AI are \"subtle\" and not necessarily boosting productivity. Tan likened the situation to a child at an arcade, where parents give $10 for a 10-minute game that yields no learning. Intel's Tan expressed that investors are looking for \"real impact\" from AI as they seek better returns on their investment, given the large amounts of capital being poured into the space. Broadcom's Tan noted that the current AI boom is focused on hardware providers, but the future value of AI lies in the builders of frontier models, who have the capability to disrupt software players. He emphasized that the industry's next bottleneck is likely capital, as frontier models require the same sources of financing as infrastructure players today. Intel's Tan expects AI to have a greater impact than the Internet, with agents improving efficiency through larger data amounts. Despite concerns about AI being a bubble, the two leaders see no signs of slowing down in the sector. Broadcom's Tan noted that OpenAI's latest revenue forecast of US$50 billion is not alarming for a startup, as investors often have unrealistic expectations. For now, these companies are losing money on heavy training investments, but this may change with greater scale. DBS CEO Tan referred to the \"token paradox,\" where companies spend more on AI tokens but reduce overall costs. She believes the next wave of winners will be enterprises that effectively adopt AI for return on investment and return on equity.",
  "summary": "Both he and Intel CEO Tan Lip-Bu suggest that capital could be AI’s next biggest bottleneck",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}