Market Overview
The global Artificial Intelligence (AI) Chip market was valued at US$ 25.12 billion in 2022 and is estimated to grow at a CAGR of 38.41% during the forecast period (2023-2030) to reach a value of US$ 335.02 billion in 2031. The global artificial intelligence (AI) chip market is poised for exponential growth and industry transformation. AI chips, which are specialized components of hardware meant to speed up AI and machine learning operations, are at the vanguard of the AI revolution. An ecosystem of AI chip manufacturers, ranging from established key companies to startups, is pushing innovation. Companies are pushing the limits of AI chip capabilities, with an emphasis on performance, efficiency and customization. According to a study, Chinese scientists have developed a chip that is substantially faster and more energy efficient than current high-performance AI chips for carrying out activities such as image recognition and autonomous driving. China is currently striving to catch up U.S. in the AI race after being denied access to critical technology.
Market Dynamics
Powering the Meteoric Rise of Artificial Intelligence Chips
AI applications have become more integrated into the fabric of business achievement than many would have predicted even a few years ago. AI innovation has seen numerous huge waves in the last year, from breakthroughs in edge AI and computer vision to data center modernization and specialized AI chips to AI creating those very chips. These advancements are opening up new opportunities for the sector.
Companies across the world are emphasizing on the development of AI chips. In October 2023, OpenAI, the startup behind ChatGPT, is considering developing its own artificial intelligence chips and has gone as far as analyzing a prospective acquisition target.
As more workloads require advanced levels of AI computing to support intelligent services, the requirement for dedicated chips that are energy-efficient and perform computations at greater rates will become critical. In chip design environments, a new generation of design tools that learn from iterations and exploit data offers a significant increase in productivity and cost efficiency. The need for next-generation processors is increasing in order to move toward a more digitally connected community. To support hyperconnected devices such as smartphones, wearable devices, autonomous vehicles and an array of other electronic gadgets, computer systems must analyze data and conduct advanced calculations at rapid speeds.
For instance, in October 2023, Tenstorrent, a Canadian startup, became a new artificial intelligence chip customer for Samsung's contract chip manufacturing unit. Tenstorrent is one of several firms vying to take on Nvidia (NVDA.O), the market leader in AI processors. The company not only manufactures chips and intellectual property for data centers, but it is also seeking to supply other areas such as automotive
Segmentation Analysis
The global artificial intelligence (AI) chip market in system on chip was valued at US$ XX million in 2022 and is estimated to reach US$ XX million by 2030, growing at a CAGR of XX% during the forecast period from 2023-2030. New product releases are frequently accompanied by technology improvements. AI chip manufacturers are constantly striving to improve their SoCs' performance, energy efficiency and capabilities. Each successive generation of SoCs often features advancements that improve their suitability for AI and machine learning activities. In October 2022, IBM announced the release of AI system-on-chip hardware. With the launch of the IBM Artificial Intelligence Unit (AIU), IBM has thrown its hat into the hardware acceleration ring. The AIU is a complete system-on-chip board that connects to servers using a PCIe interface. New SoC introductions have the potential to open up new markets and applications for AI technology. As SoCs become more powerful and costeffective, they can be deployed in previously unfeasible or prohibitively expensive sectors and use cases. For instance, in October 2023, Qualcomm unveiled the Snapdragon 8 Gen 3, a new mobile system-on-a-chip (SoC) designed to bring generative AI to our future devices. The new Snapdragon 8 Gen 3 mobile CPU from Qualcomm introduces generative AI to smartphones. The new premium system on a chip is intended to improve on-device artificial intelligence, productivity, gaming and other functions. The Snapdragon 8 Gen 3 SoC improves on the preceding Snapdragon 8 Gen 2 SoC in a number of ways. These include an upgraded Kryo CPU (up to 3.3 GHz), which Qualcomm claims is up to 98% faster with a performance boost of up to 40%; Arm Cortex-X4 technology; an enhanced AI Engine; Adreno GPU; the Hexagon NPU (which Qualcomm claims is up to 98% faster with a performance boost of up to 40%); and an array of upgrades for gaming, photography and AI applications.
Geographical Share
North America Artificial Intelligence (AI) Chip Market was valued at US$ XX million in 2022 and is projected to grow at a CAGR of XX% over the forecast period to reach US$ XX million by 2030. North America, specifically Silicon Valley in California, has long served as a global center for technological innovation, startups and established technology giants. This ecosystem has aided in the development and adoption of artificial intelligence technology, resulting in a high demand for AI chips. For instance, In August 2023, Nvidia, currently the industry leader in high-end processors for generative AI applications, will produce an even more powerful chip as the demand to operate enormous AI models grows. The GH200 super processor is officially available, according to Nvidia and can handle "the most complex generative AI workloads, spanning large language models, recommender systems and vector databases." The GH200 will have the same GPU as the H100, Nvidia's most powerful and popular AI solution at the moment, but three times the memory capacity. According to the company statement, systems based on GH200 will be available in the second quarter of year 2024. Research institutions, universities and companies in North America generate significant investments in AI research and development. This emphasis on innovation fosters the development of innovative artificial intelligence chip designs and technologies. In May 2023, Intel Corp (INTC.O) has revealed several new details about a chip for artificial intelligence (AI) computing that it aims to launch in 2025 as it alters its strategy to compete with Nvidia Corp (NVDA.O) and Advanced Micro Devices Inc.
Company Profile
International Business Machines Corporation
International Business Machines Corporation offers its goods and services in the following 9 categories: Data analytics, blockchain, supply chain, business operations, artificial intelligence, cloud computing, IT infrastructure and supply chain The company provides its services to 19 different industries, including electrical, automotive, aerospace, educational and a number of others ones. Operating in more than 175 nations, the company has grown across the Americas, Africa, Asia Pacific, Europe and Middle East regions. Geographically, America's revenue increased by 9.7% annually (10 percent adjusted for currency). EMEA (Europe, Middle East and Africa) grew by 2.9%. (14 percent adjusted for currency).
