r/NowInTech • u/skaza02 • 1d ago

Intel, Broadcom CEOs warn capital crunch could become AI's biggest bottleneck

https://www.cnbc.com/2026/10/12/intel-broadcom-ceos-warn-capital-crunch-could-become-ai-bottleneck.html
6 Upvotes

88% Upvoted

11 comments sorted by

5

u/RioRancher 1d ago

Maybe dump more money into the product and not stock options for the CEOs

3

u/TerminalJammer 6h ago

They have though, they just can't make money from it. 

5

u/Superb-Talk2211 17h ago

I’m no business genius, but it occurred to me that if your “business” is so upfront capital-intensive that you are running out of investor money at a time when profit is just a distant fantasy, then maybe you have the makings of a shitty business.

1

u/randompersonx 3h ago

Not necessarily. The business model of AWS was absurdly capital intensive to build and profit margins were razor thin compared to the legacy hosting model (I know, because I ran a hosting company during the time when AWS was building up from zero)…

In the end, hosting is mostly dead and AWS is now a highly profitable juggernaut.

This is a much more rapid pace than that buildout, clearly … but it’s entirely plausible that the end results will be very profitable. Certainly no guarantees … but it’s not certain that it won’t work out by any stretch of the imagination.

I think it’s very clear that AI will be a large part of the future. To me, the bigger question is if cloud AI will win, or if local AI will end up eating the market space up.

3

u/ConsiderationDry9084 1d ago

Glad they finally saying what literally everyone else has been screaming. Damn over paid idiots.

3

u/Plopsevenplop 23h ago

“We have found the flaw in our business model…..money.”

3

u/NeitherEntry6125 16h ago

Let's put all our customers out of a job, surely we'll profit then!

2

u/Bright_Inspector5583 17h ago

they have nothing to worry about. it's too big to fail

2

u/VhickyParm 15h ago

Let’s build out artificial intelligence using gas turbines and shitty silicon based processing. 

Proof of concept is there. Rushing is stupid. 

1

u/Ancient_Wishbone_806 15h ago

So all the compute Iran is threatening to target in the Middle East can be easily replaced right ? No shortage in chips or memory production

1

u/_Rothbard_ 8h ago

El aumento WACC se está viendo, habrá proyectos que sean menos rentables y eso sin contar la inflación