The latest edition of Omdia’s AI Processors for Cloud and the Data Center Forecast reveals the current hypergrowth in GPUs and other accelerator chips for AI is set to transform the industry, with the market expected to reach $151bn by 2029. According to Omdia’s Principal Analyst for Advanced Computing, Alexander Harrowell, there will be a distinct inflection point in 2026, marking a shift from technology adoption to changes in demand for AI applications driving growth.
A key trend identified is the revision of the underlying data center semiconductor market, fueled by AI growth. Custom chips from hyperscalers, especially Google’s TPUs, are gaining market share from GPUs and are expected to play a more crucial role in the future. The focus of innovation has shifted towards a greater variety of smaller AI models, with signs indicating that models of similar size are becoming more efficient generation over generation.
Looking ahead, there will be a significant increase in the importance of inference, with a growing user base and fleet of applications requiring more inference infrastructure. This trend is expected to make AI infrastructure more accessible to a broader range of organizations, compensating in breadth what may be lost in depth due to the evolving landscape of AI models.
Omdia, part of Informa Tech, is a technology research and advisory group that provides deep knowledge of tech markets and actionable insights to empower organizations in making informed growth decisions. Stay tuned for more updates on the evolving AI processors market and its impact on cloud and enterprise data centers.
For more information and insights, please visit Omdia’s official website.
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