Counterpoint Research has published an in-depth report revealing a significant trend in the AI hardware sector, with a particular emphasis on the non-GPU server AI chip market, commonly known as AI ASICs (Application-Specific Integrated Circuits). The report indicates that this segment is set for rapid expansion in the near term, marking a notable transformation in AI processing technology. It projects that shipments of AI ASICs will triple by 2027 compared to 2024 levels, reflecting a substantial rise in the adoption and deployment of these specialized chips designed specifically to accelerate AI workloads within data centers and enterprise environments. Furthermore, the report forecasts that by 2028, AI ASIC shipments will outnumber those of traditional GPUs (Graphics Processing Units), exceeding 15 million units annually—a significant milestone. This expected growth highlights the evolving needs in the AI infrastructure market. While GPUs have traditionally dominated AI and machine learning tasks due to their parallel processing strengths, the growing complexity and scale of AI models are driving demand for more specialized, efficient processors. AI ASICs, purpose-built for AI workloads, provide benefits such as improved performance efficiency, reduced power consumption, and architectures optimized for specific neural network operations. The rising demand for AI ASICs also parallels broader industry trends like the expansion of cloud computing services, the widespread adoption of AI applications across multiple sectors, and the necessity for data centers to handle high-throughput, low-latency AI processing.

This shift indicates organizations are aiming to diversify their hardware portfolios with specialized chips that better satisfy the performance and energy efficiency needs of next-generation AI apps. Additionally, the move toward AI ASICs could have major implications for chip manufacturers and tech firms. As this market grows, increased investments are expected in research and development to refine AI ASIC architectures, manufacturing techniques, and integration capabilities. Companies that can deliver innovative, high-performing AI ASIC solutions are positioned to capture significant shares of the expanding AI hardware market. In conclusion, the Counterpoint Research report underscores a critical turning point in AI hardware evolution. The anticipated tripling of AI ASIC shipments by 2027 and their surpassing of GPU shipments by 2028 underline a dynamic transition toward specialized AI processing technologies. This trend highlights AI ASICs’ essential role in addressing the scaling computational demands of AI applications, enhancing efficiency, and influencing the future landscape of data center infrastructure globally.