Broadcom CEO Hock Tan recently told CNBC’s Jim Cramer that artificial intelligence could soon represent an even larger share of the global economy, as the technology becomes more deeply integrated across multiple industries.

According to Tan, the current global GDP stands at around $110 trillion, with roughly 30% tied to “knowledge-based, technology-intensive” sectors. However, he believes that the rise of generative AI could significantly expand that portion. “Once you embed intelligence across different areas of society, that 30% could grow to 40% of total GDP — that’s about $10 trillion a year,” Tan explained.

If his forecast proves accurate, AI’s growth could be transformative not only for the technology sector but also for the broader global economy. Companies like Broadcom, which manufactures advanced chips and networking hardware, have already benefited from the AI boom as cloud service providers and hyperscalers race to expand their computing infrastructure. Broadcom’s stock has climbed nearly 54% this year, reflecting strong investor confidence in the company’s strategic position in the AI supply chain.

On Monday, Broadcom and OpenAI officially announced a new partnership to jointly develop and deploy 10 gigawatts of custom AI accelerators. The initiative marks a significant step toward scaling AI capabilities across industries. Following the announcement, Broadcom’s shares surged by nearly 10% by the end of the trading day.

This collaboration joins a growing list of high-value alliances among major technology firms as they compete for dominance in the AI space. Tan praised OpenAI as “one of the few companies leading the creation of foundation models,” emphasizing its unique position in the industry. Despite being privately held, OpenAI is now estimated to be worth around $500 billion.

While Broadcom traditionally maintains discretion regarding its client relationships, the company revealed earlier this year that it is working on new AI chips with three major cloud providers. Last month, executives confirmed another $10 billion in chip orders from a fourth undisclosed customer.

Tan also shared that Broadcom is currently collaborating with about seven partners, four of which he described as “real customers” — meaning those with large-scale production purchase commitments. “We feel very good about where we stand,” Tan said. “Each of these companies requires massive computing power to stay competitive in developing the most advanced foundation models in the world.”

As AI continues to evolve, Broadcom’s expanding partnerships and long-term investments suggest that the company intends to remain at the center of this transformative technological wave — one that could redefine not only the tech industry but also the global economy itself.