By 2027, revenue from Artificial Intelligence chips is expected to more than double
O Gartner, a global leader in research and advice for businesses, predicts that semiconductors designed to run Artificial Intelligence workloads will represent revenue of US$53.4 billion for the industry in 2023, which represents an increase of 20.9% over 2022.
“Developments with Generative Artificial Intelligence and the increasing use of a wide range of applications based on this technology in data centers, edge infrastructures and endpoint devices require the deployment of high-performance Graphics Processing Units (GPUs) and optimized semiconductor devices. This is driving the production and deployment of chips with Artificial Intelligence”, he says Alan Priestley, vice president and analyst at Gartner.
Artificial Intelligence semiconductor revenue will continue to register double-digit growth during the forecast period, increasing by 25.6% in 2024 and reaching 67.1 billion USD. By 2027, AI chip revenue is expected to be more than double the size of the market in 2023, reaching US$ 119.4 billion.
Many other industries and IT companies will deploy systems that include AI-enabled chips as they mature in their use of AI-based workloads. In the consumer electronics market, Gartner analysts estimate that by the end of 2023, the value of AI-enabled application processors used in devices will reach US$ 1.2 billion, up from US$ 558 million in 2022 .
The need for efficient and optimized designs to support the cost-effective execution of AI-based workloads will result in an increase in custom chip deployments. “For many enterprises, large-scale deployments of custom AI chips will replace the current predominant chip architecture – discrete Graphics Processing Units – for a wide range of AI-based workloads, especially those based on Generative AI.” , says Priestley.
Generative Artificial Intelligence is also driving demand for high-performance computing systems for development and deployment, with many vendors offering systems based on high-performance Graphics Processing Units and networking equipment seeing significant near-term benefits. In the long term, as hyperscalers look for efficient and cost-effective ways to implement these applications, Gartner expects an increase in the use of custom chips with AI.
