Subj : Chip market high isn't over says Broadcom CEO, with million-accel
To   : All
From : TechnologyDaily
Date : Thu Sep 19 2024 15:15:05

Chip market high isn't over says Broadcom CEO, with million-accelerator 
clusters on the horizon

Date:
Thu, 19 Sep 2024 14:03:00 +0000

Description:
Broadcoms CEO anticipates ongoing AI chip demand as LLMs progress, with 
non-AI components recovering soon.

FULL STORY
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Broadcom CEO Hock Tan has predicted that demand for AI clusters will continue 
for another three to five years as companies continue to battle with the 
resource- and power-intensive compute needs of AI . 

Speaking with Jim Cramer in an interview on CNBC s Mad Money, Tan outlined 
how customers plan to build increasingly larger AI clusters, doubling in size 
with each new generation of machines. 

The prediction suggests a steady rise in demand for custom AI silicon and 
other advanced semiconductors, which Tan sees as beneficial for Broadcom. 
Broadcom isnt worried about the chip market 

Tan explained that ongoing developments and advancements of large language 
models will mean that large-scale builds will be required annually in order 
to keep up with pace. As such, hyperscale AI clusters, which currently use 
100,000 accelerators, may one day grow to include one million accelerators, 
believes Tan. 

Looking to get a slice of the action, the company aims to design and deliver 
essential components, including custom-built XPUs, to meet the demand. XPUs 
are anticipated to grow faster than traditional GPUs in the future, and as 
has been proven time and time again, early entry to the market counts for a 
lot. 

Nvidia, which was one of the first companies to invest heavily in AI chips 
for data centers, briefly spent some time as the worlds most valuable 
company. Currently occupying third place, it has a market cap of $2.78 
trillion. 

Broadcoms recent AI revenue expectation was raised to $12 billion for fiscal 
year 2024, reflecting ongoing hot demand from the tech sector. 

Moreover, Tan addressed the pandemic-induced chip shortage and the state of 
non-AI semiconductor production and demand globally, indicating that recovery 
for the segment could occur in 2025 or 2026. The CEO also noted strong demand 
for Wi-Fi and storage connectivity products. More from TechRadar Pro These 
are the best AI writers Check out our roundup of the best processors More 
than half of VMware customers are reportedly looking to move following recent 
unrest



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Link to news story:
https://www.techradar.com/pro/chip-market-high-isn-t-over-says-broadcom-ceo-wi
th-million-accelerator-clusters-on-the-horizon


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