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Data center AI chip market continues to move forward: Expected to reach $21 billion by 2027

MENLO PARK, CA, USA, June 1, 2022 / — According to a new research report by market intelligence firm JP Data, the market for data center AI chips is expected to reach $21 billion by year 2027. New R&D activity around AI is driving the need for training chips, whereas AI proof of concepts going into production is driving the need for inference chips. All vendors offering CPUs, GPUs, FPGAs and ASICs have made significant progress in the past two years with new product announcements and design wins.

The revenue generated by data center AI chips has already reached multi billion dollars. Data Center AI ASIC start-up companies have raised 100s of millions of dollars in venture funding with multi-billion dollars in valuation. Several chip vendors have moved up the value chain by creating their own servers and even offering AI as a service rather than selling chips.

“CPU and GPU are the two prominent market segments in data center industry today,” said Anand Joshi, Managing Director of JP Data. “GPUs have become de-facto standard for data center training with no significant competition in sight. CPUs dominate inference world although they face competition from GPUs, FPGAs as well as ASICs. The market is hungry for new AI acceleration solutions and as a result ramp up is expected to continue in the near future.”

JP Data’s 2022 report ‘Data Center AI chips: Technology, Products, Applications and Markets’ assess industry dynamics, technology issues, market landscape and ecosystem. The report provides qualitative and quantitative analysis of data center AI chip market. It analyzes market drivers, trends, challenges, and presents user with market forecasts through 2027. The report segments revenue and shipment by different architectures (CPUs, GPUs, FPGAs, and ASICs), and provides readers with market data by training vs inference. The report also includes profiles of key industry players and a comprehensive listing of vendors, products, devices and use cases.

An Executive Summary of the report is available for free download on the firm’s website.