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Today's Exclusive Content Broadcom CEO Holds $350B Outlook Strong Amid Calls to Slow Froniter AI DevelopmentSubmitted by Leo Miller. Posted: 9/22/2026. 
Key Points- Anthropic's renewed call to slow frontier AI model development rattled AI-related stocks, with Broadcom falling 4.8% and Astera Labs dropping more than 10%.
- Broadcom CEO Hock Tan reaffirmed the company's roughly $350 billion two-year AI semiconductor sales outlook despite slowdown concerns, citing durable training and inference demand.
- Broadcom's key customer relationships with Alphabet, OpenAI, and Anthropic center on inference-optimized chips, which analysts believe would be less affected by a training-focused AI slowdown.
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Concerns about security and how artificial intelligence capabilities could evolve have put a spotlight on the pace of frontier model development. After making a similar call several months ago, Anthropic has again called for measures to limit how quickly frontier models can improve.
This has understandably raised significant concerns about the AI trade. On Sept. 14, the next trading day after Anthropic CEO Dario Amodei released his blog post, “We Must Pace the Frontier,” many AI-related stocks tanked.
Elon Musk quietly filed a document with the federal government tied to artificial intelligence, one of the largest markets in the world.
James Altucher, who previously flagged Nvidia in 2008 and Bitcoin in 2013, says the filing could rival Tesla, SpaceX and xAI combined.
Few investors know this filing exists, but that is expected to change quickly. Click here to see details on Elon Musk's newest AI filing Broadcom (NASDAQ: AVGO) fell 4.8%, while higher-volatility names such as Astera Labs (NASDAQ: ALAB) fell more than 10%. Markets expect these stocks to deliver substantial sales and earnings growth going forward, something that a slowdown in frontier model development could threaten.
Broadcom CEO Hock Tan recently faced direct questions about how pacing AI development could affect the company’s approximately $350 billion AI sales outlook. Unsurprisingly, Tan remained firm on his forecast, and his comments revealed an important nuance in the AI-slowdown debate—one that happens to favor Broadcom.
Broadcom Brushes Off AI Development Slowdown ConcernsOn its last earnings call, Broadcom guided for $115 billion in AI chip revenue in fiscal year 2027 (FY2027) and $230 billion in fiscal year 2028 (FY2028). Rounding up by a few billion dollars, Hock Tan said, “We believe with a pretty high degree of confidence, we will ship $350 billion of AI semiconductors to these customers in the next two years.”
When asked, “Is there anything that has happened in this whole debate about the AI slowdown that would give you pause to that prediction?” Tan said, “No, not in the least.” He added that the company sees compute demand for frontier model development, or training, and inference continuing to be very strong and durable. Training is the process of making models more intelligent, while inference refers to using already-trained models to execute tasks.
However, Tan made a slightly more revealing statement later, saying, “Look, I don’t know about training, but when you want to productize inference, I see it continuing to be very, very strong.” This statement aligns with how an agreed-upon slowdown in AI development would likely affect the industry.
Models becoming too intelligent too quickly is the primary fear discussed by Anthropic and others. In turn, a slowdown in AI development would likely have the greatest negative effect on demand for training compute. In fact, Amodei specifically notes in his blog, “We should also consider pacing based on limiting the ingredients that go into frontier models, such as training compute.” Luckily for Broadcom, its AI chip business is becoming more focused on inference than training, as demonstrated by its customer relationships.
Broadcom’s Top Customer Relationships Focus on InferenceOn its latest earnings call, Broadcom noted that it is Alphabet’s (NASDAQ: GOOGL) partner in developing the company’s next-generation tensor processing unit (TPU) v8i. This is the inference-optimized variant of the TPU v8, while MediaTek (OTCMKTS: MDTKF) is Alphabet’s partner in developing the training-optimized TPU v8t. Thus, Broadcom is clearly more exposed to inference demand through this chip.
The same is true of the company’s collaboration with OpenAI. Broadcom has helped OpenAI develop Jalapeño, which the companies explicitly call “OpenAI’s first custom inference chip.” While revenue from the OpenAI relationship is likely limited at this point, Broadcom does not expect that to remain the case for long. As Jalapeño rolls out, Broadcom expects OpenAI to become the company’s second-largest custom chip buyer in FY2028.
Then there is Anthropic, which Broadcom expects to become its largest source of chip revenue in FY2027 and retain that position in FY2028. Broadcom is not developing a separate chip for Anthropic; the company will also deploy TPUs. Nonetheless, these chips will be inference-optimized, with Anthropic expected to deploy 5 GW of the TPU v8i in 2027 and an additional 10 GW in 2028.
Calls for AI Slowdown Remain a Risk to WatchThere is reason to believe that training compute demand would be most adversely affected if the pace of frontier model development slowed. In this case, Broadcom’s heavy focus on inference compute could leave it in a better position.
None of this is to say that a slowdown in AI development would not negatively affect Broadcom’s business and stock price. It very well could, especially if slowing development causes frontier models to lose their intelligence lead, thereby shifting their share of inference demand. Therefore, it is important to continue monitoring whether calls for a slowdown in frontier development intensify and move toward implementation. | 
