The Artificial Intelligence (AI) market has been in the midst of transformation for several years. The advent of ChatGPT and Generative AI, compute-intensive workloads, and growing reliance on cloud platforms are spurring unprecedented demand for cutting-edge AI tools. Advanced chipsets underpin this transformation, serving as the compute power behind personal and work devices, AI servers, edge devices and other essential hardware.
To better understand how the market is evolving, ABI Research published several market forecasts (shipment and revenue) across cloud AI, edge AI, TinyML, and on-device AI segments. These data-driven analyses provide clarity into which architectures, use cases, and regions should be vendors’ priority and which are stagnating.
In this paper, we summarize key findings to help the entire AI value chain—from chipset vendors and device manufacturers to investors and sales/marketing leaders—make informed decisions about their AI strategies.
AI is having a major impact on the entire cloud AI ecosystem. It has influenced shipment volumes and revenue projections for every chipset architecture. As generative workloads, including Natural Language Processing (NLP), grow in importance, total market revenue has risen again. The continuing rise of Gen AI will drive significant market growth through the rest of the decade.
Stronger Growth in Shipments and Revenue
From 2024 to 2031, total cloud AI chipset shipments across Central Processing Units (CPUs), Graphics Processing Units (GPUs), Field Programmable Gate Arrays (FPGAs), and Application-Specific Integrated Circuits (ASICs) are expected to grow at a 19% Compound Annual Growth Rate (CAGR).
Total revenue is forecast to grow even faster, at a 21% CAGR over the same period. These numbers mark an uptick compared with the previous forecast period of 2023 to 2030.
GPUs Remain the Largest Revenue Source
GPUs continue to dominate the cloud AI chipset market. Revenue derived from silicon is expected to exceed US$105 billion by 2031, supported by strong demand for NVIDIA’s data center accelerators, AMD’s expanding lineup, and Intel’s upcoming Jaguar Shores platform.
GPU shipments will grow at a 23% CAGR through 2031, highlighting their central role in AI training and inference.
Rapid Growth in ASIC Adoption
ASICs will post the highest revenue growth among all cloud AI chipset categories. Revenue is set to grow at a 25% CAGR, reaching more than US$27 billion by 2030. These devices include custom silicon from Google and AWS, as well as commercial chips from Marvell, Broadcom, and Qualcomm. New challengers such as FuriosaAI, Rebellions, and Recogni are also adding competitive momentum to this space.
CPUs Transitioning to Niche AI Roles
CPU growth will be slower as the market shifts toward architectures better suited to AI, such as GPUs and ASICs. CPUs will continue to serve inferencing workloads but will make up a smaller share of AI server configurations over time. Even so, continued innovation from AMD, Intel, Ampere Computing, and NeuReality shows that CPUs will still play a meaningful role in future inference solutions. Regional Leadership Concentrated in Asia-Pacific and North America Asia-Pacific and North America together account for about 75% of the global cloud AI market between 2025 and 2031.
Both regions have deep AI ecosystems, including major chipset vendors, hyperscale data centers, and solution providers. Their combined strength ensures they will remain the core centers of global cloud AI development and deployment.
