AI funding faces looming shortage as investors demand real returns

At one outlet World Economy event in Bangkok, Tan Su Shan, head of Southeast Asia’s largest bank, cautioned that the AI boom will soon hit a funding bottleneck as lenders seek tangible returns. She highlighted existing constraints in memory, chips and power, adding that capital will likely dry up after about two years for most players in the AI supply chain. The warning mirrors Broadcom CEO Hock Tan’s recent comparison of AI investors to casino gamblers, a sentiment that rattled markets.

Tan emphasized that, unlike the abrupt shock of the 2008 financial crisis, investors now have the chance to demand risk-adjusted returns, which could lead to a more balanced market. She also mentioned that hyperscalers are shifting from cash generators to cash consumers, raising further financing pressures. While acknowledging geopolitical complexities across Taiwan, China and the broader region, she suggested that middle-power nations could help maintain stability through diversified trade.