The global AI Chip Market is on track to soar from USD 123.16 billion in 2024 to USD 311.58 billion by 2029, growing at a robust CAGR of 20.4%. The increasing demand for parallel computing in AI data centers is driving innovation across multiple industries, including BFSI, healthcare, retail, and e-commerce. The growth in AI server shipments and the adoption of AI-driven industrial robotics and automation further boost the market.
Natural Language Processing (NLP) to See Significant Growth
Natural language processing is expected to grow significantly, driven by the rise of AI applications like chatbots, virtual assistants, and language translation services. The increased computational demands from large language models, such as GPT-40, underscore the need for powerful AI chips to handle these tasks.
Memory Segment to Expand Rapidly
With the rise in AI applications, advanced memory solutions like HBM and DDR5 are in high demand. These technologies enable faster data access and processing, crucial for AI workloads. The recent launch of advanced DRAM solutions, like Micron Technology’s 32GB server DRAM, is expected to drive growth in this segment.
Healthcare Segment Driving AI Chip Adoption
Healthcare is adopting AI chips for improved diagnostics and personalized medicine. Companies like Cerebras, in collaboration with Mayo Clinic, are using AI chips to develop large language models for medical applications, fueling the segment’s growth.
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North America to Lead AI Chip Market Growth
The North American market, driven by key players like NVIDIA, AMD, and Intel, is set for rapid growth, with extensive focus on R&D and strategic partnerships.