Jon Peddie, founder and president of Jon Peddie Research, was the featured guest on DE 24/7 tech podcaster Kenneth Wong’s show, where he discussed the rapidly expanding AI processor industry and the daily fluctuations within this billion-dollar market. The AI processors market is significant and one that everyone, especially those in tech communities, should pay close attention to. Computer graphics analyst Jon Peddie, who leads Jon Peddie Research, explains why in an interview with Digital Engineering’s Kenneth Wong on a recent episode of DE 24/7. “As of the end of the third quarter, 137 suppliers—from major industry leaders to venture capital-backed startups—are competing in this $387 billion market. Currently, the market is entering a new phase characterized by consolidation, strategic shifts, and distinct bets on future computing paradigms. ” AI plays a prominent role in daily life, whether directly visible or operating behind the scenes. Its influence is rapidly growing, as our reliance on AI technology increases.

Central to this growth are AI processors. Starting in 2025, Jon Peddie Research began releasing detailed reports on the AI processor market—essential resources for established companies, startups, or newcomers aiming to enter this field. The Annual AI Processors Market Development Report is a comprehensive, monthly-updated document that defines the AI processor market size by shipments, value, segment type, installed base, and investments. It also includes a database of all AI processor chip suppliers. Additionally, the AI Processors Quarterly Update Report tracks semiconductor shipments from manufacturers to ODMs and OEMs within this sector. A free summary report is also available, outlining how GPUs evolved into AI processors (AIPs) and the explosive growth of the AIP market. In the podcast, Peddie analyzes the market, highlights the major players and emerging contenders ready to challenge them, and explores the past, present, and future shaped by AI processors. A link to the podcast can be found here.