Artificial Intelligence (AI) Chipsets Market Report 2025

The artificial intelligence (AI) chipsets market size has grown exponentially in recent years. It will grow from $20.43 billion in 2024 to $28.36 billion in 2025 at a compound annual growth rate (CAGR) of 38.9%. The growth in the historic period can be attributed to rise in machine learning applications, growth in deep learning technologies, expansion of data analytics, adoption of ai in consumer electronics, increase in cloud computing.

The artificial intelligence (AI) chipsets market size is expected to see exponential growth in the next few years. It will grow to $100.14 billion in 2029 at a compound annual growth rate (CAGR) of 37.1%. The growth in the forecast period can be attributed to surge in demand for ai in autonomous vehicles, surge in ai chipsets for natural language processing, rise of ai in cybersecurity solutions, increase in ai-powered iot devices, customized ai chipsets for industry-specific applications. Major trends in the forecast period include development of new neuromorphic chipsets, advances in semiconductor manufacturing, advances in quantum computing, collaboration with ai software developers, ai chipsets for real-time video analysis, focus on energy-efficient ai chip designs.

The growing demand for autonomous vehicles is poised to drive the expansion of the artificial intelligence (AI) chipsets market in the foreseeable future. Autonomous vehicles, known for their capacity to operate critical functions without human intervention, rely on AI chipsets to provide the necessary processing power, machine learning capabilities, and real-time decision-making. Projections from the National Association of Insurance Commissioners indicate an expected presence of 3.5 million autonomous vehicles on American roads by 2025, increasing to 4.5 million by 2030. Consequently, the surging trend toward autonomous vehicles is a significant driver for the artificial intelligence (AI) chipset market.

The increasing adoption of 5G technology is anticipated to fuel the growth of the artificial intelligence (AI) chipset market. 5G, the fifth generation of mobile telecommunications technology, promises faster data speeds, lower latency, increased capacity, and enhanced connectivity. AI chipsets play a pivotal role in optimizing 5G capabilities by efficiently processing complex data sets, supporting real-time decision-making, and facilitating edge computing. The GSM Association (GSMA) reports over 640 million 5G connections globally in 2022, with an expected total of 2 billion connections by 2025. This adoption of 5G technology is a key factor driving the growth of the artificial intelligence (AI) chipset market.

Innovations in product offerings represent a prominent trend gaining traction in the artificial intelligence (AI) chipsets market. Major players in the market, such as Nvidia Corporation, are prioritizing the development of groundbreaking solutions to fortify their market positions. Nvidia's launch of the GeForce RTX 40 Series GPUs in September 2022 exemplifies this trend, introducing features such as streaming multiprocessors, third-generation RT cores, fourth-generation tensor cores, shader execution reordering, an Ada optical flow accelerator, and dual Nvidia encoders. These innovations are designed to deliver exceptional performance, with the flagship RTX 4090 offering up to four times the performance of its predecessor.

Major companies in the artificial intelligence (AI) chipsets market are actively introducing new products, including AI accelerators, to gain a competitive advantage. AI accelerators, also known as neural processing units (NPUs), significantly enhance the speed of AI workloads, particularly those involving deep learning. Intel Corporation's launch of AI-focused products in December 2023, including the Intel Core Ultra mobile processor and the 5th Gen Intel Xeon processors, exemplifies this strategy. These advancements aim to expand AI capabilities across diverse computing environments, including data centers, the cloud, network, edge, and personal computers. Intel's commitment to making AI accessible and pervasive is further demonstrated through the preview of Gaudi3, an upcoming AI accelerator for generative AI models.

In July 2024, SoftBank, a Japan-based Internet services company, acquired Graphcore for $600 million. This acquisition is focused on bolstering SoftBank's AI capabilities by incorporating Graphcore's Intelligence Processing Units (IPUs) to compete with industry leaders like Nvidia and to further its strategy toward artificial general intelligence (AGI). Graphcore is a semiconductor company based in the UK that specializes in creating intelligence processing units (IPUs) specifically designed for artificial intelligence (AI) workloads.

Major companies operating in the artificial intelligence (AI) chipsets market include Apple Inc., Alphabet Inc., Samsung Electronics Co. Ltd., Microsoft Corporation, Huawei Technologies Corporate Limited, Intel Corp., International Business Machines Corporation (IBM), Qualcomm Technologies, Broadcom Limited, Micron Technology Inc., Toshiba Corporation, Nvidia Corporation, Advanced Micro Devices Inc., Texas Instruments, MediaTek Inc., Baidu Inc., STMicroelectronics, Infineon Technologies, Renesas Electronics Corporation, NXP Semiconductors NV, Synopsys Inc., Cadence Design Systems Inc., Xilinx Inc., Arm Holdings, Graphcore Limited, Mythic Ltd., SambaNova Systems.

North America was the largest region in the artificial intelligence (AI) chipsets market in 2024. The regions covered in the artificial intelligence (ai) chipsets market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai) chipsets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Artificial intelligence (AI) chipsets are specialized hardware components designed to efficiently perform the computational tasks required for AI applications, finding applications in various fields such as autonomous vehicles, robotics, natural language processing, computer vision, and other AI-driven systems.

The primary hardware types of artificial intelligence (AI) chipset components include processors, memory, and networks. AI processors are specialized chips that leverage AI technology and machine learning to accelerate the processing of AI applications, including modeling and inference. They operate through training and inference functions, employing various technologies such as machine learning, natural language processing, context-aware computing, computer vision, and predictive analysis. These AI chipsets are utilized across diverse industries, including healthcare, manufacturing, automotive, agriculture, retail, cybersecurity, human resources, marketing, law, and others.

The artificial intelligence (AI) chipset market research report is one of a series of new reports that provides artificial intelligence (AI) chipset market statistics, including artificial intelligence (AI) chipset industry global market size, regional shares, competitors with artificial intelligence (AI) chipset market share, detailed artificial intelligence (AI) chipset market segments, market trends, and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) chipset industry. This artificial intelligence (AI) chipset market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The artificial intelligence (AI) chipsets market consists of revenues earned by entities by providing quantum computing, and high-performance computing. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) chipsets market also includes sales of application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), central processing units (CPUs), and graphical processing units (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.

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