{
  "id": 14738513,
  "title": "‘They are in a casino’: Broadcom is making billions off the AI boom, but CEO Hock Tan said many AI investors have ‘no clue’ what they’re investing in",
  "url": "https://urgent.news/2026/10/15/they-are-in-a-casino-broadcom-is-making-billions-off-the-ai-boom-but",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-15T15:30:09.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/10/15/broadcom-hock-tan-ai-investing-casino/"
  },
  "original_language": "en",
  "account": "Broadcom, a designer of custom AI chips for hyperscalers, has generated approximately $68 billion in AI semiconductor revenue since late 2023, as per its earnings reports. The company's fiscal third quarter, ending August 2, saw a tripling of AI semiconductor revenue to $16.7 billion compared to the previous year. However, Broadcom's CEO Hock Tan recently questioned the investment strategies of many investors drawn to the AI boom, likening them to gamblers. Speaking at the DBS Asia Future Forward Conference in Singapore, Tan stated, \"A lot of investors have no clue what they are investing in,\" adding that they \"set very extreme expectations only to find out that it's almost like they are in a casino.\"\n\nTan acknowledged that OpenAI's reported $50 billion in annualized revenue at the end of September signals a viable business model for AI labs. However, he stressed that annualized revenue does not equate to revenue collected over 12 months, and these labs have expenses to cover. OpenAI anticipates spending over $25 billion on training alone this year, indicating ongoing losses due to high expenses on training. Tan warned that the lack of capital might be the biggest constraint on the AI industry, more than semiconductor, memory, or electricity shortages. He also criticized companies for \"wasting money\" on AI experimentation, comparing it to children using tokens in arcade games without any tangible outcomes. This criticism aligns with findings from a McKinsey survey, which revealed that while 80% of respondents reported AI improving individual productivity, only 37% said it contributed to their organization's earnings before interest and taxes.",
  "summary": "Tan warned that investors are betting on AI companies that might not end up profitable, and that companies are ‘wasting money’ on AI experimentation.",
  "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."
}