Gartner forecasts AI chip revenues to grow 33% in 2024, reaching $71 billion globally. Of that total, $21 billion is attributed to AI accelerators in servers, the analyst firm said in a statement released Wednesday.
The total of $71 billion is up from $53.6 billion in 2023, with the total forecast in 2025 expected to reach nearly $92 billion. AI accelerators used in servers are forecast to grow from $21 billion to $33 billion by 2028. GenAI is fueling demand for high-performance AI chips in data centers, said Alan Priestley, vice president analyst at Gartner.
As for AI PCs, Gartner said 22% of all PC shipments will contain AI elements in 2024. That number will grow to 100% of enterprise PC purchases in 2026. AI PCs, as defined by Gartner, include a neural processing unit to allow AI PCs to run longer, quieter and cooler and have AI tasks running continually in the background to create more leveraging of AI in everyday activities.
Compute electronics will account for 47% of total AI semiconductor revenue in 2024, or $33.4 billion. AI chips for automotive electronics should reach $7 billion and AI chips for consumer electronics should reach $1.8 billion, Gartner added.
Gartner is also focused on a growing “fierce” battle between GPU vendors like Nvidia and major hyperscalers such as AWS, Google, Meta and Microsoft who are designing their own chips optimized for AI. Custom designed chips can improve efficiencies and reduce costs for hyperscalers and lower costs for users accessing AI apps. Priestley said he expects this competition to continue.
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