- According to data provided by AltIndex.com, the market for microchips for Artificial Intelligence (AI) applications has seen dazzling growth in recent years.
- This market is expected to grow tenfold over the next ten years, topping $300 billion by 2033.
AI chips are dedicated semiconductor components that perform the complex calculations and tasks required for artificial intelligence (AI) applications. They are designed to accelerate algorithms and data processing using artificial intelligence techniques. They aim to boost application performance while reducing the energy consumption of processing systems.
According to data from Statista and Market.us, the global market for AI chips will reach $30 billion in 2024, $7 billion more than in 2023. Over the next three years, market revenues are expected to more than double, reaching $67 billion in 2027.
By 2029, the entire market is expected to represent $100 billion. Three years later, it could reach $260 billion, eight times the sales forecast for 2024. According to analysts, the global market for AI chips will continue to grow in 2033, reaching $341 billion – 1,000% more than this year.
Massive investment in AI
Although NVIDIA dominates the AI chip market with a market share of 80%, companies of all sizes are looking for alternatives to diversify their AI chip options. This is exacerbating competition and leading to massive R&D investment by both major semiconductor manufacturers and startups. Venture capitalists are also banking on the growing need for AI chips, injecting tens of billions of dollars into AI startups.
According to Market.us data, funding in AI chip startups exceeded $20 billion in 2023, $5 billion more than the previous year. Strong investor interest in the AI market should continue to drive funding activity this year. More than $25 billion of capital is expected to be invested in this market in 2024. Three-year funding for AI chip startups could reach $60 billion.
