AI Chip Statistics By Market Size, Revenue, Design, Application and Facts
Joseph D'Souza
Updated · Jan 06, 2025
TABLE OF CONTENTS
- Introduction
- Editor’s Choice
- General AI Chip Statistics
- Key Features of AI Chips
- AI Chip Market Size Statistics
- AI Chip Types Statistics
- AI Chip Market Revenue Statistics
- AI Chip Market Statistics by Region
- AI Chip Design Statistics
- Top 5 AI Chip Leaders Statistics
- AI Chips Market Size Statistics in China
- AI Chip Statistics by Application
- AI Chip Companies Market Cap Statistics
- How Do AI Processors Work?
- Recent Developments in AI Processors (2024)
- Future Product Releases
- Factors Influencing AI Chip Demand
- Conclusion
Introduction
AI Chip Statistics: Artificial Intelligence (AI) chips are highly equipped processors designed for handling the unique demands of AI tasks such as machine learning and data analysis. These chips now work as powering applications for speech recognition, image processing, and autonomous vehicles. Recent statistics show rapid growth in the AI chip market due to increasing demand for faster and more efficient processing.
In recent years, tech companies have heavily invested in research and development to improve these chips. The market is projected to grow even more as AI technologies become widespread in industries like healthcare, finance, and transportation. AI chips are paving the way for smarter, more capable systems, making them a key driver in the evolution of modern technology.
Editor’s Choice
- AI Chip Statistics show that the global AI chip market is projected to grow from USD 123.16 billion in 2024 to USD 311.58 billion by 2029, at a CAGR of 20.4%.
- Specialized chips for generative AI are expected to generate over USD 50 billion in revenue in 2024, accounting for two-thirds of all AI chip sales.
- Meanwhile, demand for high-end data center GPUs is expected to increase by 218% in 2024, while demand for ASIC accelerators is projected to grow by 178%.
- North America’s AI chip market is estimated at USD 32.24 billion in 2024, with a projected CAGR of 29.03% during the forecast period.
- Approximately 92% of semiconductor executives forecast overall industry growth in 2025, driven by advancements in AI and high-performance computing.
- Cloud AI startup Vultr raised USD 333 million in 2024, and its valuation is USD 3.5 billion.
- AI Chip Statistics further report that Microsoft purchased 485,000 Nvidia Hopper AI chips in 2024.
- The AI chip market will reach USD 927.76 billion by 2034, with a CAGR of 28.90% from 2024 to 2034.
- Nvidia introduced the Blackwell AI chip in March 2024, enhancing performance for AI applications.
- Broadcom’s entry into the AI chip market has intensified competition, and projections indicate significant growth potential alongside established leaders like Nvidia.
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General AI Chip Statistics
- As per Deloitte’s prediction, AI chips will make up about 11% of the global chip market by the end of 2024, which will be worth around USD 576 billion.
- The AI chip market shows strong growth, with over USD 25 billion in funding expected.
- By the end of 2024, more than 65% of data centers are expected to use AI accelerators, up from 45% in 2022.
- Patent applications for AI chips are predicted to increase by 25% in 2023 and 20% in 2024.
- AI Chip Statistics In 2023, GPUs led the AI chip market, holding over 32% of the total share.
- During the same period, system-on-chip (SoC) led the AI chip market with a share of over 36%, while Training, Edge, and Consumer Electronics dominated with 65%, 67%, and 18% shares, respectively.
(Reference: erste-am.com)
- In 2023, global semiconductor sales are expected to drop by 10% to USD 515.1 billion.
- However, in 2024, sales are predicted to grow by 12%, reaching nearly USD 576 billion.
- Gartner experts predict AI component sales will grow by 21% this year and 25.6% in 2024.
- The AI chip market is expected to more than double in size by 2027, rising from USD 53.5 billion to USD 119.4 billion.
Key Features of AI Chips
- AI chips are designed specifically to handle complex artificial intelligence tasks efficiently.
- Key features include high computational power for processing vast amounts of data quickly and energy efficiency to optimize performance without excessive power consumption.
- These chips often support parallel processing, allowing them to handle multiple tasks simultaneously.
- Specialized architectures, like neural network accelerators, enhance machine learning and deep learning operations.
- They also provide faster data transfer rates and lower latency for real-time applications.
- Flexibility and scalability enable AI chips to adapt to various workloads.
- Additionally, they often incorporate advanced security features to protect sensitive data and ensure the integrity of the AI model.
AI Chip Market Size Statistics
(Reference: precedenceresearch.com)
- The global AI chip market is valued at USD 73.27 billion in 2024.
- It is expected to grow to about USD 927.76 billion by 2034, with a yearly growth rate of 28.90%.
- Furthermore, the market size of the AI Chip in coming years is followed by 2025 (USD 94.44 billion), 2026 (USD 121.73 billion), 2027 (USD 156.92 billion), 2028 (USD 202.26 billion), 2029 (USD 260.72 billion), 2030 (USD 336.07 billion), 2031 (USD 433.19 billion), 2032 (USD 558.38 billion), and 2033 (USD 719.75 billion).
(Reference: precedenceresearch.com)
- United States AI chip market is valued at USD 22.57 billion in 2024.
- It is expected to grow to around USD 291.06 billion by 2034, with an annual growth rate of 29.11%.
AI Chip Types Statistics
| AI Chip Types | Revenue (USD billion) | Market Share |
| GPU | 32 | 45% |
| ASIC | 17.8 | 25% |
| FPGA | 10.7 | 15% |
| CPU | 7.1 | 10% |
| Others | 3.6 | 5% |
AI Chip Market Revenue Statistics
(Reference: statista.com)
- A Statista report analysis shows that the AI chip market is growing quickly and is expected to reach USD 91.96 billion by 2025.
- By the end of 2024, the market revenue had reached USD 71.25 billion, which increased from USD 53.66 billion in 2023.
AI Chip Market Statistics by Region
(Reference: precedenceresearch.com)
- AI Chip Statistics reports that North America leads the global AI chip market, accounting for 44% of the total market share in 2023.
- Meanwhile, other regions’ market share was Europe (26%), Asia Pacific (23%), Latin America (5%), and MEA (2%).
AI Chip Design Statistics
- As mentioned in AI Chip Statistics, in 2023, the global AI chip design market was worth about $12.93 billion,
- The market is set to hit USD 57.63 billion by 2030, growing at 21.3% annually.
- Generative AI chip design will rise from USD 0.15 billion in 2023 to USD 0.20 billion in 2024, with 31.7% growth.
- North America’s AI chip market will be worth 32.24 billion in 2024.
(Reference: enterpriseappstoday.com)
- The annual growth rate of advanced AI chip design tools has increased by 20% CAGR from 2023 to 2028.
- Meanwhile, in the EDA, tools and chip sales have reached 8% and 6%, respectively.
Top 5 AI Chip Leaders Statistics
Nvidia
- Nvidia maintains a dominant position in the AI chip market, holding an estimated 95% market share.
- Nvidia’s revenue for the fourth quarter of fiscal year 2024 rose to USD 22.1 billion, marking a 265% increase from the same quarter of the previous year.
- In 2023, Nvidia accounted for 65% of the USD 17.7 billion data-center AI chip market.
AMD (Advanced Micro Devices)
- AI Chip Statistics In 2024, AMD’s data centre segment, which includes AI chips, achieved USD 3.5 billion in revenue, marking a 122% year-over-year increase.
- The company raised its AI chip sales forecast to over USD 5 billion for the year, up from the previous estimate of USD 4.5 billion.
Intel
- In 2024, Intel’s Data Center and AI (DCAI) segment reported USD 3.0 billion in revenue, a 3% decrease from the previous year.
- The company had anticipated over USD 500 million in AI chip sales for 2024 but has since withdrawn this forecast due to underperformance.
Qualcomm
- In fiscal year 2024, Qualcomm reported a 19% increase in fourth-quarter revenue, reaching USD 10.24 billion, and a 9% rise in annual revenue to USD 38.96 billion.
- The company’s QCT segment, which encompasses AI chip sales, contributed significantly, with USD 24.9 billion from smartphones, a 10% growth.
- AI Chip Statistics also show that Qualcomm’s automotive sector experienced a 55% increase, totaling USD 2.9 billion.
Broadcom
- Broadcom has emerged as a significant player in the AI chip market, developing custom ASIC chips to meet evolving AI processing needs.
- In fiscal year 2024, Broadcom’s AI revenue surged 220% to USD 12.2 billion, contributing to a total revenue of USD 51.6 billion.
- The company anticipates that the AI market will present a revenue opportunity of between USD 60 billion and USD 90 billion by fiscal 2027.
AI Chips Market Size Statistics in China
(Reference: statista.com)
- AI Chip Statistics show that in 2023, China’s AI chip market grew to 120.6 billion yuan, with GPUs leading the market share.
- By 2024, the market is estimated to reach around USD 141.2 billion.
AI Chip Statistics by Application
(Source: enterpriseappstoday.com)
- Natural Language Processing (NLP): Achieved a market size of USD 15.2 billion in 202, which is growing at 35%.
- Computer Vision: Reached USD 12.8 billion, with a 32% growth rate.
- Robotics: Valued at USD 10.5 billion, expanding by 30%.
- Network Security: Attained USD 8.3 billion, increasing by 28%.
- Other Applications: The combined market size is USD 7.0 billion, growing at 25%.
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AI Chip Companies Market Cap Statistics
(Reference: statista.com)
- The Statista graph further shows that by November 15, 2024, Nvidia had become the world’s largest semiconductor company, with a market value of USD 3,600 billion.
- Followed by TSMC, Broadcom, ASML, and Samsung, capturing a market capitalization of USD 977.57 billion, USD 795.77 billion, 272.47 billion and USD 272.47 billion, respectively.
- Furthermore, others leading semiconductor companies market cap in the same duration are termed as AMD (USD 225.31 billion), Texas Instruments (USD 187.91 billion), Qualcomm (USD 182.17 billion), Applied Materials (USD 153.33 billion), Arm Holdings (USD 143.3 billion), Micron Technology (USD 109.96 billion), Intel (USD 107.95 billion), Analog Devices (USD 105.37 billion), Lam Research (USD 96.23 billion), SK Hynix (USD 87.97 billion), KLA (USD 86.27 billion), Synopsys (USD 84.22 billion), Marvell Technology Group (USD 78.56 billion), Tokyo Electron (USD 66.19 billion) and MediaTek (USD 62.39 billion).
How Do AI Processors Work?
(Source: redswitches.com)
- They process vast amounts of data quickly by using parallel computing, which involves performing many calculations simultaneously.
- Unlike traditional processors, AI chips have features like tensor cores or neural processing units (NPUs) that are optimized for tasks such as image recognition, natural language processing, and predictive analysis.
- TAI processors rely on advanced algorithms to analyze patterns and make decisions.
- By speeding up complex computations, Athey efficiently and effectively powers applications such as self-driving cars, voice assistants, and recommendation systems.
Recent Developments in AI Processors (2024)
- Nvidia’s Blackwell Architecture: In March 2024, Nvidia announced its new AI chip architecture, Blackwell, named after mathematician David Blackwell.
- AMD’s Instinct MI325X: Advanced Micro Devices (AMD) introduced the Instinct MI325X AI accelerator, which it claims offers superior performance to Nvidia’s H200 AI chips. The MI325X will be available to customers in Q4 2024, positioning AMD as a strong competitor in the AI chip market.
- Intel’s Arrow Lake Processors: Intel announced its Arrow Lake-S desktop processors, which will be released on October 24, 2024. These processors are touted as the “world’s first gaming processor with an AI accelerator,” integrating AI capabilities directly into consumer CPUs.
Future Product Releases
- Nvidia’s Rubin Architecture: Following Blackwell, Nvidia plans to release a new family of chips annually. Details about the Rubin successor are anticipated in the coming months.
- AMD’s MI350 AI Chip: As mentioned in AI Chip Statistics, AMD is supposed to launch the MI350 AI chip in the second half of 2025, aiming to compete with Nvidia’s Blackwell system.
Factors Influencing AI Chip Demand
- The proliferation of AI technologies across various industries has increased the demand for AI processors capable of efficiently handling complex computations.
- The development of generative AI models requires substantial computational power.
- The growth of cloud services and data centers necessitates high-performance AI processors to manage large-scale data processing and AI workloads.
- The rise of edge computing, where data processing occurs closer to data sources, demands AI processors that are efficient and capable of operating in decentralized environments.
- Companies like Nvidia, AMD, and Intel are continuously innovating to capture market share, leading to rapid advancements and increased availability of AI processors.
Conclusion
AI chips are revolutionizing the global technology industry by providing faster and more efficient data processing systems. These specialized chips, designed for artificial intelligence tasks, improve performance in areas like machine learning, natural language processing, and image recognition.
Their energy efficiency and speed make them ideal for applications in industries like healthcare, automotive, and finance. As AI becomes more central to our lives, these chips will play a key role in shaping the future of technology driving innovation across various fields.
FAQ.
What types of AI chips exist?
AI chips include GPUs, TPUs, FPGAs, ASICs, neuromorphic, edge AI chips, and quantum processors.
How is an AI chip different from a regular chip?
Unlike regular chips made for general computing, an AI chip is designed for faster data processing and machine learning tasks.
Where can I find AI chips in use?
AI chips are used in smartphones, self-driving cars, smart home devices, medical tools, and robots.
Who makes AI chips?
Companies like NVIDIA, AMD, Intel, Qualcomm, Google, Apple, and Samsung make AI chips.
What is the future of AI chips?
AI chips will get faster, smarter, smaller, cheaper, and power-efficient, transforming technology across industries.
Joseph D'Souza
Joseph D'Souza started Coolest Gadgets in 2005 to share his love for tech gadgets. It has since become a popular tech blog, famous for detailed gadget's reviews and companies statistics. Joseph is committed to providing clear, well-researched content, making tech easy to understand for everyone. Coolest Gadgets is a trusted source for tech news, loved by both tech fans and beginners.
