25 Jun 2025

AI chips

The AI chip industry is experiencing rapid growth as artificial intelligence applications demand ever-greater processing power. Unlike traditional CPUs, specialized AI chips such as GPUs, FPGAs, and ASICs are designed to efficiently handle the complex computations required for training and running large-scale machine learning models. This surge in demand has driven massive investments from both private tech giants and governments. Companies like NVIDIA, which dominates the AI GPU market with its H100 chips, and firms like Google, Intel, AMD, and TSMC are expanding production and research. Simultaneously, public initiatives such as the U.S. CHIPS Act ($52B), EU Chips Act (€43B), and China's $150B program reflect the strategic importance of AI chip leadership. The global market, valued at $40 billion in 2024, is projected to exceed $500 billion by 2031, with a compound annual growth rate of over 30%.

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