As Anthropic and OpenAI are set for IPOs, Broadcom CEO has a message for AI investors: For now, it is still losing money

With frontier artificial intelligence (AI) labs Anthropic and OpenAI moving toward historic Initial Public Offerings (IPO), Broadcom CEO Hock Tan has issued a blunt warning to AI investors: despite the towering valuations, the generative AI sector remains an unprofitable endeavour. Speaking at an industry gathering in Singapore organised by DBS Bank, the leader of the $1.7 trillion semiconductor supplier framed AI as a volatile and uncertain financial bet at current times.“For now, it’s still losing money,” Tan said of the AI sector, adding, “So frankly, it doesn’t tell anything at this point except that there is a lot of potential revenue growth out of providing frontier generative AI models.”Anthropic is expected to list publicly around Thanksgiving, targeting a valuation in the $2 trillion territory, with OpenAI projected to follow closely…