CEO said Big Tech groups are ‘investing full tilt’ as US chipmaker soars to more than $1tn valuation
Big Tech’s spending frenzy on artificial intelligence will continue until the end of the decade, according to the head of Broadcom, which has soared to a valuation of more than $1tn on growing investor excitement about its AI chips business. Hock Tan, Broadcom’s chief executive, told the Financial Times his clients in Silicon Valley were drawing up AI infrastructure investment plans spanning “three to five years in a very big hurry”. “They are investing full-tilt,” he said.
” In 2018, Broadcom’s $142bn hostile takeover bid for rival chip company Qualcomm was blocked by then-US president Donald Trump in an unprecedented intervention. Tan has also been busy completing Broadcom’s integration of last year’s $69bn acquisition of cloud software company VMware. Nonetheless, he said he was “open to potential acquisitions” in either hardware or software: “We are in the considering mode, so to speak.