AI chip sales predicted to jump by a third this year – then cool off
(2024/05/29)
- Reference: 1717011190
- News link: https://www.theregister.co.uk/2024/05/29/ai_processor_revenue_gartner/
- Source link:
Gartner is predicting a 33 percent rise in revenue generated by AI chip sales in 2024 versus 2023.
The analyst house [1]today said AI processor sales will reach just above $71 billion, compared to the $53.6 billion sold last year. Additionally, Gartner predicts this revenue will increase further by 29 percent to nearly $92 billion in 2025.
So that's a slowing growth, then, eh? Up 33 percent this year, then up 29 percent next year.
[2]
By AI chips, Gartner seems to mean any processor or accelerator that's specifically capable of speeding up machine-learning tasks in hardware, be that a datacenter accelerator, or an AI PC processor, or something in a car, and so on.
[3]
[4]
Speaking of which, this growth for AI chips is driven in part by datacenters. $21 billion of that estimated $71 billion in AI semiconductor revenue is derived from datacenter products alone, according to Gartner's stats. Chief among these server-grade parts are Nvidia's Hopper and the forthcoming [5]Blackwell GPUs , and competing GPUs and other processors from suppliers including AMD, Intel, and others will undoubtedly contribute to the total as well.
"Today, generative AI (GenAI) is fueling demand for high-performance AI chips in data centers. In 2024, the value of AI accelerators used in servers, which offload data processing from microprocessors, will total $21 billion, and increase to $33 billion by 2028," Gartner VP analyst Alan Priestly said.
[6]Not even Chromebooks can escape AI PC craze: Google to inject Plus laptops with LLM juice
[7]Nvidia said to be prepping AI PC chip with Arm and Blackwell cores
[8]Will Windows drive a PC refresh? Everyone's talking about AI
[9]Microsoft Build 2024 looks like it's more about AI fluff than developer stuff
Additionally, Gartner says $33.4 billion, or nearly half of 2024's AI chip revenue, will come from AI PCs, cars, and other general computer devices. Interestingly, consumer electronics with AI will only generate $1.8 billion, according to Gartner. It posits the AI PC will only represent 22 percent of all personal computer shipments this year. Automotive applications are in fact far more lucrative, with a predicted $7.1 billion of revenue.
However, the notorious [10]AI PC is set to play a significant role in rising revenue beyond 2024, as Gartner projects that every single enterprise PC sold in 2026 will be an AI PC. This implies a very fast rate of adoption among business users despite there being some hesitation today over [11]whether more expensive AI PCs would actually be worth it.
[12]
AI PCs are hoped to [13]spark growth in the desktop market, driven by the latest chips from Intel, AMD, and now Qualcomm with its Snapdragon X Elite. Even before the launch of new Arm chips for Windows, the advent of the AI PC has apparently already resulted in [14]a positive Q1 for the industry. Though, this all hinges on users believing that AI PCs are worth buying. ®
Get our [15]Tech Resources
[1] https://www.gartner.com/en/newsroom/press-releases/2024-05-29-gartner-forecasts-worldwide-artificial-intelligence-chips-revenue-to-grow-33-percent-in-2024
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Zlelgqjzz7xYKXEm3Jk0LwAAABg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zlelgqjzz7xYKXEm3Jk0LwAAABg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zlelgqjzz7xYKXEm3Jk0LwAAABg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2024/03/18/nvidia_turns_up_the_ai/
[6] https://www.theregister.com/2024/05/28/google_ai_chromebook/
[7] https://www.theregister.com/2024/05/28/nvidia_ai_pc_arm_blackwell_core/
[8] https://www.theregister.com/2024/05/28/windows_to_drive_pc_refresh/
[9] https://www.theregister.com/2024/05/22/microsoft_build_2024/
[10] https://www.theregister.com/2024/03/12/what_is_an_ai_pc/
[11] https://www.theregister.com/2024/04/23/cios_biz_buyers_on_ai_pcs/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zlelgqjzz7xYKXEm3Jk0LwAAABg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2024/05/28/windows_to_drive_pc_refresh/
[14] https://www.theregister.com/2024/04/09/pc_shipments_canalys_idc/
[15] https://whitepapers.theregister.com/
The analyst house [1]today said AI processor sales will reach just above $71 billion, compared to the $53.6 billion sold last year. Additionally, Gartner predicts this revenue will increase further by 29 percent to nearly $92 billion in 2025.
So that's a slowing growth, then, eh? Up 33 percent this year, then up 29 percent next year.
[2]
By AI chips, Gartner seems to mean any processor or accelerator that's specifically capable of speeding up machine-learning tasks in hardware, be that a datacenter accelerator, or an AI PC processor, or something in a car, and so on.
[3]
[4]
Speaking of which, this growth for AI chips is driven in part by datacenters. $21 billion of that estimated $71 billion in AI semiconductor revenue is derived from datacenter products alone, according to Gartner's stats. Chief among these server-grade parts are Nvidia's Hopper and the forthcoming [5]Blackwell GPUs , and competing GPUs and other processors from suppliers including AMD, Intel, and others will undoubtedly contribute to the total as well.
"Today, generative AI (GenAI) is fueling demand for high-performance AI chips in data centers. In 2024, the value of AI accelerators used in servers, which offload data processing from microprocessors, will total $21 billion, and increase to $33 billion by 2028," Gartner VP analyst Alan Priestly said.
[6]Not even Chromebooks can escape AI PC craze: Google to inject Plus laptops with LLM juice
[7]Nvidia said to be prepping AI PC chip with Arm and Blackwell cores
[8]Will Windows drive a PC refresh? Everyone's talking about AI
[9]Microsoft Build 2024 looks like it's more about AI fluff than developer stuff
Additionally, Gartner says $33.4 billion, or nearly half of 2024's AI chip revenue, will come from AI PCs, cars, and other general computer devices. Interestingly, consumer electronics with AI will only generate $1.8 billion, according to Gartner. It posits the AI PC will only represent 22 percent of all personal computer shipments this year. Automotive applications are in fact far more lucrative, with a predicted $7.1 billion of revenue.
However, the notorious [10]AI PC is set to play a significant role in rising revenue beyond 2024, as Gartner projects that every single enterprise PC sold in 2026 will be an AI PC. This implies a very fast rate of adoption among business users despite there being some hesitation today over [11]whether more expensive AI PCs would actually be worth it.
[12]
AI PCs are hoped to [13]spark growth in the desktop market, driven by the latest chips from Intel, AMD, and now Qualcomm with its Snapdragon X Elite. Even before the launch of new Arm chips for Windows, the advent of the AI PC has apparently already resulted in [14]a positive Q1 for the industry. Though, this all hinges on users believing that AI PCs are worth buying. ®
Get our [15]Tech Resources
[1] https://www.gartner.com/en/newsroom/press-releases/2024-05-29-gartner-forecasts-worldwide-artificial-intelligence-chips-revenue-to-grow-33-percent-in-2024
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Zlelgqjzz7xYKXEm3Jk0LwAAABg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zlelgqjzz7xYKXEm3Jk0LwAAABg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zlelgqjzz7xYKXEm3Jk0LwAAABg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2024/03/18/nvidia_turns_up_the_ai/
[6] https://www.theregister.com/2024/05/28/google_ai_chromebook/
[7] https://www.theregister.com/2024/05/28/nvidia_ai_pc_arm_blackwell_core/
[8] https://www.theregister.com/2024/05/28/windows_to_drive_pc_refresh/
[9] https://www.theregister.com/2024/05/22/microsoft_build_2024/
[10] https://www.theregister.com/2024/03/12/what_is_an_ai_pc/
[11] https://www.theregister.com/2024/04/23/cios_biz_buyers_on_ai_pcs/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zlelgqjzz7xYKXEm3Jk0LwAAABg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2024/05/28/windows_to_drive_pc_refresh/
[14] https://www.theregister.com/2024/04/09/pc_shipments_canalys_idc/
[15] https://whitepapers.theregister.com/