According to a forecast by Gartner, Inc. , semiconductors designed for artificial intelligence (AI) workloads are projected to generate $53. 4 billion in revenue for the semiconductor industry in 2023. This represents a 20. 9% increase from 2022. The growing use of AI-based applications in data centers, edge infrastructure, and endpoint devices, coupled with advancements in generative AI, is driving the demand for high-performance graphics processing units (GPUs) and optimized semiconductor devices. The revenue from AI semiconductors is expected to continue experiencing double-digit growth, with a 25. 6% increase in 2024 to reach $67. 1 billion. By 2027, the AI chips market is anticipated to more than double its size in 2023, reaching $119. 4 billion. As the adoption of AI-based workloads matures in various industries and IT organizations, the deployment of AI chips will become more widespread. In the consumer electronics market, analysts predict that the value of AI-enabled application processors used in devices will reach $1. 2 billion by the end of 2023, up from $558 million in 2022. The need for efficient and optimized designs to support cost-effective AI-driven workloads will drive the deployment of custom-designed AI chips, replacing the current dominant chip architecture, discrete GPUs, in many organizations.

Generative AI techniques are particularly driving the demand for these custom AI chips. Furthermore, high-performance computing systems for AI development and deployment will also see a boost in demand, with vendors offering GPU-based systems and networking equipment. Over the long term, hyperscalers are expected to increasingly use custom-designed AI chips as they seek efficient and cost-effective solutions for deploying AI applications. To discover more about leading through change spurred by generative AI, Gartner offers a complimentary webinar titled "How CIOs Can Lead Through Generative AI's Business Implications. " Gartner for High Tech provides tech leaders and teams with role-based best practices, industry insights, and strategic views on emerging trends and market changes. Their aim is to help organizations achieve their mission-critical priorities and build successful organizations for the future. For more information, visit www. gartner. com/en/industries/high-tech and follow Gartner for High Tech on X and LinkedIn using #GartnerHT. Please note that the provided information does not meet your request.