Broadcom CEO Hock Tan says the rise of generative artificial intelligence could add trillions of dollars a year to global economic output.
In a new interview with CNBC’s Jim Cramer, Tan frames generative AI not as a niche advancement but as an intelligence layer that will expand productivity across every industry that relies on information, computation, and knowledge work.
“I’m talking about critical utility for society. We’re talking about generative AI. Now, I don’t want to try to sound a bit hyped. But you think about it logically.”
He outlines a simple equation, noting that the world’s GDP stands at roughly $110 trillion, with about 30% derived from knowledge-based, technology-intensive sectors. He says generative AI will massively multiply human output in those key sectors.
“And you put in generative AI — you create intelligence in a lot of other aspects of society. That 30% will grow to 40% of all GDP. That’s $10 trillion a year.”
Tan adds that the investment required to achieve that growth is small relative to the potential returns.
“If you’re talking growing $10 trillion as the pot at the end, as the golden pot at the end of the rainbow, what’s spending a trillion a year, which we are not there yet. But you see, the return on investment is pretty good.”
On Monday, news emerged that Broadcom signed a deal with ChatGPT creator OpenAI to develop 10 gigawatts of custom AI accelerators. Under the deal, OpenAI will design proprietary accelerators and systems that Broadcom will help develop and deploy.
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