Generative AI could lift global GDP: Broadcom CEO

Broadcom CEO Hock Tan said generative AI could account for a larger share of global GDP as it expands across more industries.

He told CNBC that knowledge-based and technology-intensive sectors now make up about 30% of the estimated US$110 trillion global GDP, which could rise to 40% with the growth of generative AI.

Broadcom recently partnered with OpenAI to build and deploy 10 gigawatts of custom AI accelerators, sending its shares up nearly 10%.

Tan said the company is working with about seven industry players on AI chips, with four providing large-scale production orders.

Last month, Broadcom reported securing US$10 billion in chip orders from a fourth unnamed customer.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

Broadcom’s 10 GW chip pledge lacks delivery details

The OpenAI and Broadcom plan calls for 10 GW of AI accelerators (processors for training and running neural nets). It names no foundry partners (contract chip manufacturers), advanced packaging (techniques that link chips in a package) or memory options such as High Bandwidth Memory (HBM) as deployment starts in the second half of 2026 and ends by late 2029 1.
Broadcom CEO Hock Tan said OpenAI is not the $10 billion customer mentioned on earlier earnings calls. OpenAI has not turned a profit, so funding these purchases alongside AMD (6 GW) and Nvidia (10 GW) deals remains an open question 2.

Power and cooling vendors see rising demand from 10 GW buildout

If 10 GW deploy by 2029, liquid cooling (circulating fluid to remove heat from chips) is needed for high-density server racks (cabinets for servers). Immersion cooling (submerging hardware in a non-conductive fluid) will be used as racks exceed 150 kilowatts (kW), yet adoption sits under 10% of data centers today 3. The AI data center liquid cooling market could rise from $3.2 billion in 2025 to $15.7 billion by 2035 4.
Power transmission is tight with four-year or longer lead times to extend high-capacity lines, which helps electrical equipment vendors and utilities pursuing power purchase agreements (long-term contracts to buy electricity). About 10 GW of data center power capacity breaking ground in 2025 will need roughly $170 billion in financing, with liquid cooling becoming standard for AI-focused builds 3.