Broadcom’s Hock Tan says generative AI will command a much bigger share of world GDP

Broadcom Chief Executive Hock Tan said generative artificial intelligence will expand the portion of global output produced by knowledge- and tech-intensive sectors from roughly 30% to 40%, implying about $10 trillion in annual GDP. The remarks came as Broadcom and OpenAI unveiled a pact to build and deploy 10 gigawatts of custom AI accelerators, part of the industry’s arms race for compute. Broadcom shares jumped nearly 10% on the news and are up about 54% this year amid surging demand from hyperscalers. Tan, who called “merchant silicon” Broadcom’s main rival, said the company is working closely with about seven major players—four with large production orders—and cited OpenAI’s private valuation near $500 billion.

Read more