Data Center AI Chip Market Continues to Grow: Expected to Reach $21 Billion by 2027


MENLO PARK, California, United States, June 1, 2022 / — According to a new research report from business intelligence firm JP Data, the data center AI chip market is expected to reach $21 billion by 2027. New R&D activity around AI drives the need for training chips, while proof-of-concept AI entering production drives the need for inference chips. All vendors offering CPUs, GPUs, FPGAs, and ASICs have made significant progress over the past two years with new product announcements and winning designs.

Revenues generated by data center AI chips have already reached several billion dollars. Data Center AI ASIC startups have raised hundreds of millions of dollars in venture funding with a multi-billion dollar 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 main market segments in the data center industry today,” said Anand Joshi, general manager of JP Data. “GPUs have become the de facto standard for training data centers with no significant competition in sight. CPUs dominate the world of inference although they face competition from GPUs, FPGAs as well as ASICs. The market is hungry for new AI acceleration solutions and therefore the ramp-up is expected to continue in the near future.”

JP Data’s 2022 Report “Data Center AI chips: Technology, Products, Applications and Markets” assesses industry dynamics, technological issues, market landscape and ecosystem. The report provides qualitative and quantitative analysis of the Data Center AI Chips Market. It analyzes market drivers, trends, challenges and presents users with market forecasts till 2027. The report segments revenue and shipments according to different architectures (CPU, GPU, FPGA and ASIC) and provides readers with market data by training vs inference. The report also includes profiles of key industry players and a comprehensive list of vendors, products, devices, and use cases.

An executive summary of the report is available for free download from the firm’s website.

About JP Data

JP Data is a Silicon Valley-based market intelligence company specializing in artificial intelligence. The company covers the entire AI landscape, from chips and development infrastructure to enterprise and edge applications. The company supplements its qualitative analysis in each report with comprehensive company, ecosystem, product, price and volume data. Visit the JP Data website to learn more.

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