This Artificial Intelligence Chip market report covers market characteristics, size & growth, segmentation, regional & country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
The artificial intelligence chip market size has grown exponentially in recent years. It will grow from $29.65 billion in 2024 to $40.79 billion in 2025 at a compound annual growth rate (CAGR) of 37.6%. The growth in the historic period can be attributed to increased data generation, rise in healthcare sector, investment in ai research, rise in retail and e-commerce, rise in economic growth.
The artificial intelligence chip market size is expected to see exponential growth in the next few years. It will grow to $164.07 billion in 2029 at a compound annual growth rate (CAGR) of 41.6%. The growth in the forecast period can be attributed to growing demand for data-intensive applications, advancements in machine learning algorithms, growing automotive sector, rising financial services, rising urbanization. Major trends in the forecast period include customized ai hardware, edge ai acceleration, quantum computing integration, neuromorphic computing, energy-efficient ai chips:.
The surge in smart homes and smart city demands is projected to be a significant driver for the artificial intelligence chips market. Smart cities incorporate digital technologies to enhance the lives of citizens, promoting sustainability and convenience. As an illustration, in March 2022, Saudi Arabia initiated a smart city project in Jeddah, unveiling the first two stages, encompassing a 500,000 square meter labor city within the 5 million square meter Smart City initiative. The project aligns with Saudi Vision 2030, emphasizing interconnected infrastructure and innovative digital technology to provide automated services. The escalating need for smart urban living is fueling the growth of artificial intelligence chips.
The increasing adoption of AI technologies is poised to drive the artificial intelligence chip market. These AI chips play a crucial role in supporting AI technologies, providing the essential hardware and computational capabilities for efficient execution of AI-related tasks. According to a May 2022 report from the International Business Machines Corporation (IBM), 35% of global companies have integrated AI into their operations, with an additional 42% exploring AI integration. This steady rise in AI adoption, increasing by four points compared to 2021, signifies the driving force behind the expansion of the artificial intelligence chip market.
Leading companies in the artificial intelligence chips market are pushing innovation and research, exemplified by the development of advanced technologies such as the Atom AI chip. Rebellions Inc., a South Korea-based company specializing in generative AI chips, introduced the Atom in February 2023. The Atom chip features a unique decentralized programming model and technology aimed at empowering users with highly powerful yet energy-efficient AI hardware. Anticipated to consume only about 20% of the power consumed by other prevailing powerful chips in the market, the Atom is designed to provide a domain-specific AI processor alongside optimized software integration.
Major enterprises within the artificial intelligence chip sector are pioneering innovative technological solutions, exemplified by the SN40L chip, in a strategic move to enhance their market profitability. SambaNova Systems, a United States-based company specializing in generative AI models, introduced the SN40L chip in September 2023. This chip is specifically crafted to facilitate customers in employing higher quality AI models at a reduced overall cost. Designed for large language models essential for enterprise applications, the SN40L chip can effectively power a 5 trillion parameter model. Engineered with two sophisticated memory types, the hardware combination allows users to operate larger AI models without compromising size for precision.
In August 2023, Advanced Micro Devices Inc., a prominent semiconductor company based in the United States, finalized the acquisition of Mipsology for an undisclosed sum. This strategic move by Advanced Micro Devices Inc. aims to fortify its array of products in the realm of artificial intelligence tools and solidify its competitive standing within the chip market. Mipsology, based in France, specializes in artificial intelligence software and tools.
Major companies operating in the artificial intelligence chip market include Intel Corporation, Mediatek Inc, NVIDIA Corporation, Qualcomm Technologies Inc., Advanced Micro Devices Inc, Alphabet Inc, NXP Semiconductors N.V, Micron Technology Inc, IBM Corporation, Apple Inc, Huawei Technologies Co Ltd, Mythic Inc, Samsung Electronics Co ltd., LG Corporation, Google LLC, Advanced Micro Devices Inc, Baidu, Mellanox Technologies, Xilinx Inc., Graphcore, Cerebras Systems, Habana Labs, Vinova Pte Ltd., MemryX Inc., BrainChip Holdings Ltd., NeuReality Ltd.
Artificial intelligence chips are specialized computer chips designed to optimize efficiency and speed specifically for AI-related computations. These chips excel in delivering high performance and rapid processing for AI applications, particularly in areas such as banking, finance, trading, insurance, and client engagements, facilitating the extraction of business insights at scale.
The primary types of artificial intelligence chips include GPU (Graphics Processing Unit), ASIC (Application-Specific Integrated Circuit), FPGA (Field-Programmable Gate Array), CPU (Central Processing Unit), and other chip variants. GPUs, known for providing accelerated graphics processing, are often standalone cards plugged into the PCI Express (PCIe) bus, serving gamers with top-notch performance. The processing types encompass both edge and cloud computing. Technologies involved in these chips include System-on-Chip (SoC), System-in-Package (SiP), Multi-Chip Module, and other relevant technologies. These AI chips find applications across various domains such as natural language processing (NLP), robotics, computer vision, network security, and other specialized applications. Industries leveraging artificial intelligence chips span media and advertising, Banking, Financial Services, and Insurance (BFSI), Information Technology (IT) and telecommunications, retail, healthcare, automotive and transportation, and other sectors.
The artificial intelligence chips market research report is one of a series of new reports that provides artificial intelligence chips market statistics, including artificial intelligence chips industry global market size, regional shares, competitors with an artificial intelligence chips market share, detailed artificial intelligence chips market segments, artificial intelligence chips market trends and opportunities, and any further data you may need to thrive in the artificial intelligence chips industry. This artificial intelligence chips market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
North America was the largest region in the artificial intelligence market in 2024. The regions covered in this artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The countries covered in the artificial intelligence market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The artificial intelligence chips market consists of sales of application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), central processing units (CPUs), and GPUs. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
The artificial intelligence chip market size has grown exponentially in recent years. It will grow from $29.65 billion in 2024 to $40.79 billion in 2025 at a compound annual growth rate (CAGR) of 37.6%. The growth in the historic period can be attributed to increased data generation, rise in healthcare sector, investment in ai research, rise in retail and e-commerce, rise in economic growth.
The artificial intelligence chip market size is expected to see exponential growth in the next few years. It will grow to $164.07 billion in 2029 at a compound annual growth rate (CAGR) of 41.6%. The growth in the forecast period can be attributed to growing demand for data-intensive applications, advancements in machine learning algorithms, growing automotive sector, rising financial services, rising urbanization. Major trends in the forecast period include customized ai hardware, edge ai acceleration, quantum computing integration, neuromorphic computing, energy-efficient ai chips:.
The surge in smart homes and smart city demands is projected to be a significant driver for the artificial intelligence chips market. Smart cities incorporate digital technologies to enhance the lives of citizens, promoting sustainability and convenience. As an illustration, in March 2022, Saudi Arabia initiated a smart city project in Jeddah, unveiling the first two stages, encompassing a 500,000 square meter labor city within the 5 million square meter Smart City initiative. The project aligns with Saudi Vision 2030, emphasizing interconnected infrastructure and innovative digital technology to provide automated services. The escalating need for smart urban living is fueling the growth of artificial intelligence chips.
The increasing adoption of AI technologies is poised to drive the artificial intelligence chip market. These AI chips play a crucial role in supporting AI technologies, providing the essential hardware and computational capabilities for efficient execution of AI-related tasks. According to a May 2022 report from the International Business Machines Corporation (IBM), 35% of global companies have integrated AI into their operations, with an additional 42% exploring AI integration. This steady rise in AI adoption, increasing by four points compared to 2021, signifies the driving force behind the expansion of the artificial intelligence chip market.
Leading companies in the artificial intelligence chips market are pushing innovation and research, exemplified by the development of advanced technologies such as the Atom AI chip. Rebellions Inc., a South Korea-based company specializing in generative AI chips, introduced the Atom in February 2023. The Atom chip features a unique decentralized programming model and technology aimed at empowering users with highly powerful yet energy-efficient AI hardware. Anticipated to consume only about 20% of the power consumed by other prevailing powerful chips in the market, the Atom is designed to provide a domain-specific AI processor alongside optimized software integration.
Major enterprises within the artificial intelligence chip sector are pioneering innovative technological solutions, exemplified by the SN40L chip, in a strategic move to enhance their market profitability. SambaNova Systems, a United States-based company specializing in generative AI models, introduced the SN40L chip in September 2023. This chip is specifically crafted to facilitate customers in employing higher quality AI models at a reduced overall cost. Designed for large language models essential for enterprise applications, the SN40L chip can effectively power a 5 trillion parameter model. Engineered with two sophisticated memory types, the hardware combination allows users to operate larger AI models without compromising size for precision.
In August 2023, Advanced Micro Devices Inc., a prominent semiconductor company based in the United States, finalized the acquisition of Mipsology for an undisclosed sum. This strategic move by Advanced Micro Devices Inc. aims to fortify its array of products in the realm of artificial intelligence tools and solidify its competitive standing within the chip market. Mipsology, based in France, specializes in artificial intelligence software and tools.
Major companies operating in the artificial intelligence chip market include Intel Corporation, Mediatek Inc, NVIDIA Corporation, Qualcomm Technologies Inc., Advanced Micro Devices Inc, Alphabet Inc, NXP Semiconductors N.V, Micron Technology Inc, IBM Corporation, Apple Inc, Huawei Technologies Co Ltd, Mythic Inc, Samsung Electronics Co ltd., LG Corporation, Google LLC, Advanced Micro Devices Inc, Baidu, Mellanox Technologies, Xilinx Inc., Graphcore, Cerebras Systems, Habana Labs, Vinova Pte Ltd., MemryX Inc., BrainChip Holdings Ltd., NeuReality Ltd.
Artificial intelligence chips are specialized computer chips designed to optimize efficiency and speed specifically for AI-related computations. These chips excel in delivering high performance and rapid processing for AI applications, particularly in areas such as banking, finance, trading, insurance, and client engagements, facilitating the extraction of business insights at scale.
The primary types of artificial intelligence chips include GPU (Graphics Processing Unit), ASIC (Application-Specific Integrated Circuit), FPGA (Field-Programmable Gate Array), CPU (Central Processing Unit), and other chip variants. GPUs, known for providing accelerated graphics processing, are often standalone cards plugged into the PCI Express (PCIe) bus, serving gamers with top-notch performance. The processing types encompass both edge and cloud computing. Technologies involved in these chips include System-on-Chip (SoC), System-in-Package (SiP), Multi-Chip Module, and other relevant technologies. These AI chips find applications across various domains such as natural language processing (NLP), robotics, computer vision, network security, and other specialized applications. Industries leveraging artificial intelligence chips span media and advertising, Banking, Financial Services, and Insurance (BFSI), Information Technology (IT) and telecommunications, retail, healthcare, automotive and transportation, and other sectors.
The artificial intelligence chips market research report is one of a series of new reports that provides artificial intelligence chips market statistics, including artificial intelligence chips industry global market size, regional shares, competitors with an artificial intelligence chips market share, detailed artificial intelligence chips market segments, artificial intelligence chips market trends and opportunities, and any further data you may need to thrive in the artificial intelligence chips industry. This artificial intelligence chips market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
North America was the largest region in the artificial intelligence market in 2024. The regions covered in this artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The countries covered in the artificial intelligence market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The artificial intelligence chips market consists of sales of application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), central processing units (CPUs), and GPUs. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Artificial Intelligence Chip Market Characteristics3. Artificial Intelligence Chip Market Trends and Strategies4. Artificial Intelligence Chip Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics and Covid and Recovery on the Market32. Global Artificial Intelligence Chip Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Artificial Intelligence Chip Market34. Recent Developments in the Artificial Intelligence Chip Market
5. Global Artificial Intelligence Chip Growth Analysis and Strategic Analysis Framework
6. Artificial Intelligence Chip Market Segmentation
7. Artificial Intelligence Chip Market Regional and Country Analysis
8. Asia-Pacific Artificial Intelligence Chip Market
9. China Artificial Intelligence Chip Market
10. India Artificial Intelligence Chip Market
11. Japan Artificial Intelligence Chip Market
12. Australia Artificial Intelligence Chip Market
13. Indonesia Artificial Intelligence Chip Market
14. South Korea Artificial Intelligence Chip Market
15. Western Europe Artificial Intelligence Chip Market
16. UK Artificial Intelligence Chip Market
17. Germany Artificial Intelligence Chip Market
18. France Artificial Intelligence Chip Market
19. Italy Artificial Intelligence Chip Market
20. Spain Artificial Intelligence Chip Market
21. Eastern Europe Artificial Intelligence Chip Market
22. Russia Artificial Intelligence Chip Market
23. North America Artificial Intelligence Chip Market
24. USA Artificial Intelligence Chip Market
25. Canada Artificial Intelligence Chip Market
26. South America Artificial Intelligence Chip Market
27. Brazil Artificial Intelligence Chip Market
28. Middle East Artificial Intelligence Chip Market
29. Africa Artificial Intelligence Chip Market
30. Artificial Intelligence Chip Market Competitive Landscape and Company Profiles
31. Artificial Intelligence Chip Market Other Major and Innovative Companies
35. Artificial Intelligence Chip Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Artificial Intelligence Chip Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on artificial intelligence chip market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase:
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Assess the impact of key macro factors such as conflict, pandemic and recovery, inflation and interest rate environment and the 2nd Trump presidency.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market shares.
- Benchmark performance against key competitors.
- Suitable for supporting your internal and external presentations with reliable high quality data and analysis
- Report will be updated with the latest data and delivered to you along with an Excel data sheet for easy data extraction and analysis.
- All data from the report will also be delivered in an excel dashboard format.
Description
Where is the largest and fastest growing market for artificial intelligence chip? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The artificial intelligence chip market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) By Chip Type: GPU; ASIC; FPGA; CPU; Other Chip Types2) By Processing Type: Edge; Cloud
3) By Technology: System-On-Chip (SoC); System-In-Package (SIP); Multi-Chip Module; Other Technologies
4) By Application: Natural Language Processing (NLP); Robotics; Computer Vision; Network Security; Other Applications
5) By Industry: Media and Advertising; BFSI; IT and Telecom; Retail; Healthcare; Automotive and Transportation; Other Industries
Subsegments:
1) By GPU (Graphics Processing Unit): Consumer GPUs; Data Center GPUs; Integrated GPUs2) By ASIC (Application-Specific Integrated Circuit): Deep Learning ASICs; Neuromorphic ASICs
3) By FPGA (Field-Programmable Gate Array): Standard FPGAs; High-Performance FPGAs
4) By CPU (Central Processing Unit): General-Purpose CPUs; AI-Optimized CPUs
5) By Other Chip Types: DSP (Digital Signal Processor); RISC-V Chips; Hybrid Chips
Key Companies Mentioned: Intel Corporation; Mediatek Inc; NVIDIA Corporation; Qualcomm Technologies Inc.; Advanced Micro Devices Inc
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
The major companies featured in this Artificial Intelligence Chip market report include:- Intel Corporation
- Mediatek Inc
- NVIDIA Corporation
- Qualcomm Technologies Inc.
- Advanced Micro Devices Inc
- Alphabet Inc
- NXP Semiconductors N.V
- Micron Technology Inc
- IBM Corporation
- Apple Inc
- Huawei Technologies Co Ltd
- Mythic Inc
- Samsung Electronics Co ltd.
- LG Corporation
- Google LLC
- Advanced Micro Devices Inc
- Baidu
- Mellanox Technologies
- Xilinx Inc.
- Graphcore
- Cerebras Systems
- Habana Labs
- Vinova Pte Ltd.
- MemryX Inc.
- BrainChip Holdings Ltd.
- NeuReality Ltd.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | January 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 40.79 Billion |
| Forecasted Market Value ( USD | $ 164.07 Billion |
| Compound Annual Growth Rate | 41.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 27 |
