Gartner expects chipmakers to post revenue of up to $53.4 billion in 2023, up 20.9 percent from 2022.

The hype around generative AI and the rise of AI-based applications in data centers, edge infrastructures and end devices are driving demand for GPUs to new all-time highs. According to analyst firm Gartner, AI chip makers’ revenue would grow to $53.4 billion this year, up more than 20.9 percent from 2022.

Gartner also looks to 2024 and sees even stronger growth to $67.1 billion, an increase of 25.6 percent. By 2027, the AI ​​chip market is expected to double in value compared to 2023 to an impressive $119.4 billion.

The need for efficient and optimized chip designs will lower the cost of AI workloads. Gartner therefore sees a significant increase in AI chips that are specially developed for a specific purpose in the coming years. These days, this almost always happens with GPUs, with Nvidia breaking the thread. It is reportedly generating tens of thousands of euros in profit per H100 GPU, the fastest and most popular chip in the range.

Finally, Gartner also points out the impact of generative AI on HPC systems. Many manufacturers focusing on GPU-based systems are seeing tremendous near-term benefits. In the long term, hyperscalers could provide a way out for more efficient and cost-effective ways to run AI applications. In the future, these hyperscalers will play an important role in the implementation of specially developed AI chips.