Hock Tan, the CEO of Broadcom, told Jimmy Cramer on Monday that artificial intelligence could soon account for a much larger share of the world’s economy as it spreads through every industry on the planet. Tan pointed out global GDP now stands near $110 trillion, with around 30% of that coming from “knowledge-based, technology-intensive” sectors, but when generative AI becomes part of everyday production and decision-making, that could surge to 40%, creating roughly $10 trillion in new value each year. “You put in generative AI, you create intelligence in a lot of other aspects of society,” Tan said. “That 30% will grow to 40% of all GDP. That’s $10 trillion a year.” Tan’s view is that this surge in AI-driven activity will strengthen not only the technology industry but also the entire network of companies that depend on it. Broadcom, which builds chips and networking hardware, is one of the firms riding that momentum. Its stock has climbed 53.86% this year as demand for AI infrastructure skyrockets, and Tan’s forecast gives an idea of how big this boom might still get. Broadcom and OpenAI expand partnership on massive AI buildout During the same interview, Tan confirmed that Broadcom had entered into a new partnership with OpenAI to build and deploy 10 gigawatts of custom AI accelerators, specialized processors designed to handle the huge computational needs of large-scale models. The two companies announced the collaboration on Monday, describing it as part of a wider plan to scale AI deployment across industries. Investors jumped on the news, sending Broadcom’s shares up 9.88% by the end of the trading session, as Cryptopolitan reported . Tan described OpenAI as “one of those few players in the forefront of creating foundation models,” and noted that even as a private company, it holds an estimated $500 billion valuation. He said that while Broadcom has a “hard-nosed” business approach, it still looks years ahead at what he called “this wave called generative AI.” The company doesn’t usually reveal much about its clients, but Tan gave a rare look at how deep those partnerships go. Earlier this year, Broadcom said it was developing new AI chips with three major cloud service providers, and by last month, it had secured $10 billion in chip orders from a fourth, unnamed customer. Tan said the company is now working closely with “about seven players,” four of which he defined as “real customers” — those that have given production purchase orders at scale. “We feel very good about it,” Tan said. “Because each of these guys need a lot of compute capacity for them to basically play in this game and eventually win this game of creating the best foundation model in the world.” Broadcom launches Wi-Fi 8 to support AI-driven networks Alongside the OpenAI deal, Broadcom rolled out its newest Wi-Fi 8 silicon solutions for broadband and edge networks to strengthen connectivity as AI workloads grow heavier. These chips are reportedly designed for residential gateways, enterprise access points, and mobile devices. But Broadcom’s product includes many other models that target different parts of the wireless ecosystem; there is BCM6718 for home and operator access, BCM43840 and BCM43820 for enterprise networks, and BCM43109 for edge devices like smartphones, laptops, tablets, and automotive systems. Broadcom’s Tan said these new products were “purpose-built” for high performance, reliability, and energy efficiency in AI-era networks, where data movement is just as critical as computation. He added that Broadcom will also license its Wi-Fi 8 intellectual property to companies in IoT, automotive, and mobile sectors so they can integrate the same technology into their devices. The goal is to make AI connectivity more accessible across every layer of the digital economy; from data centers to the devices people use every day. Sign up to Bybit and start trading with $30,050 in welcome gifts
