What shortages does Tan Su Shan expect?

She cited existing shortages in memory, chips and power, and said a shortage in capital will soon follow.

How are hyperscalers changing their borrowing behavior?

Tan said many hyperscalers are tapping the market before their credit ratings get downgraded, moving from massive cash generators to massive cash guzzlers.

What did Broadcom and Intel CEOs say about AI investing?

Tan referenced their comments likening some AI investors to casino gamblers who do not really know what the returns are.

AI Stocks & MarketsAI Business & IndustrySemafor Tech4m agoOct 19, 2026, 22:01 JST

DBS CEO Tan Su Shan warns of coming capital crunch in AI

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3 Key Points

What happened
DBS CEO Tan Su Shan said shortages in memory, chips and power will soon extend to capital, and that AI users will start demanding ROI that may or may not materialize.
Why it matters
She said hyperscalers are tapping markets before credit downgrades and shifting from massive cash generators to massive cash guzzlers, a pivot that could pressure the AI supply chain's financing.

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Context & Analysis

Tan Su Shan's warning comes after Broadcom and Intel CEOs likened AI investors to casino gamblers, a comparison she said spooked markets and prompted Elon Musk to quip "no crying in the casino." She argued the reaction reflects jittery nerves but is healthy, because the ROI and capex questions are being raised before a sudden crisis rather than after one.

She pointed to the bond market as the mechanism already adjusting, demanding more returns for risk on both AI and the US fiscal deficit, and said the private credit market is also adjusting. Her concern is structural: US capital markets have pulled money from sovereign wealth funds, individuals and retail investors into a concentrated AI bucket, and at some point those investors will question returns.

For DBS itself, she described a future where customer agents may interact with bank agents, and stressed governance guardrails so agents do not access data they should not or act outside policy.

FAQ

What shortages does Tan Su Shan expect?: She cited existing shortages in memory, chips and power, and said a shortage in capital will soon follow.
How are hyperscalers changing their borrowing behavior?: Tan said many hyperscalers are tapping the market before their credit ratings get downgraded, moving from massive cash generators to massive cash guzzlers.
What did Broadcom and Intel CEOs say about AI investing?: Tan referenced their comments likening some AI investors to casino gamblers who do not really know what the returns are.

Semafor TechRead Original Article

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