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Dedicated processors for AI solutions and applications are increasingly in demand, Gartner market researchers have found. Worldwide sales from these types of processors are growing to 49 billion euros ($53 billion) this year.

In their analysis, Gartner’s market experts note that the demand for specific AI processors is only growing. This, of course, is in stark contrast to the general processor market, which has actually shown a decline in demand in recent years.

Reasons for popularity

Key reasons for the increased demand for AI processors include the substantially increased use of generative AI solutions and the increasing use of AI functionality in datacenters, edge infrastructure and devices. In particular, there is strong demand for high-performance GPUs and optimized processor-devices, Gartner said.

For the foreseeable future, demand will only increase. This will be driven by the fact that running AI workloads will drop in price, even more and better generative AI solutions will emerge, and cost-saving deployment of these solutions by hyperscalers will become possible. Especially when it comes to custom-built AI processors.

Sharply increasing sales

Of course, increased demand also means that sales from AI processors are going to increase substantially in the coming years. For this year, market researchers expect sales to grow to a total of $53 billion. Last year, it totaled $44 billion.

For 2024, sales from AI processors will increase to $67 billion. In four years, in 2027, revenue from dedicated AI processors is expected to total over $119 billion.

Also read: ‘AWS considering new AI chips from AMD’