Top 23 AI Chip Makers of 2024 - Statistics & Facts

Essential key insights on AI chip makers leading the artificial intelligence revolution (Updated March 2024)

Written by
Torbjørn Flensted
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March 12, 2024

Access to AI chips is the golden ticket to the future of technology and wealth.

As the heart of artificial intelligence, these chips hold the key to power in the digital age. The race for AI chip dominance is not just a tech battle, it's a fight for the future.

What are AI Chips?

AI chips are specialized semiconductors for artificial intelligence tasks. They are essential in the training of large language models (LLMs) and play a crucial role in the operation of systems like ChatGPT. The market for these chips, worth $53.5 billion in 2023, is expected to grow by nearly 30% in 2024.

AI chips, powering the artificial intelligence revolution, are driving a market worth $53.5 billion in 2023, with nearly 30% growth expected in 2024.

The billions of dollars invested in the development of AI chips underscore their critical role in propelling industry advancements, driving AI evolution, and fueling competition in the tech industry.

Why AI Chips Matters

The AI Chip War is a high-stakes global contest among companies for control over AI chips, the critical components powering the transformative field of artificial intelligence.

As AI infiltrates various sectors, the ability to produce or procure these chips has become a key determinant of economic success. The war is not just about technological superiority, but also about securing access to these chips. The companies that succeed in this race will shape the AI-driven future and amass the immense wealth it promises.

Escalation in the Global AI Chip Battle

As an example of how serious this war is, the U.S. government has tightened restrictions on chip exports to China, closing loopholes that previously allowed access to advanced technology. As reported in a recent Wired article, this move is part of a strategy to curb China's AI development.

The new rules impose reporting requirements for advanced chip sales and prevent Chinese companies from obtaining chips through foreign subsidiaries. These measures aim to prevent China from using AI for military purposes and stifling its technological progress. However, the restrictions have sparked controversy among U.S. chipmakers.

Trillion-Dollar Quest for AI Chip Power

OpenAI CEO, Sam Altman, is spearheading an audacious initiative to raise up to $7 trillion. This project aims to revolutionize the global semiconductor industry, significantly enhancing chip-building capacity and AI power. This massive investment underscores the critical role of AI chips in achieving Artificial General Intelligence (AGI).

While I doubt that such a colossal sum can be raised, this move tells us how seriously tech visionaries are taking the AI war.

Top 23 AI Chip Makers of 2024

Here is a list of the top AI chip companies to watch out for in the AI chip race:

1. Nvidia

Nvidia, with a market cap of $530.7 billion, is renowned for their powerful GPUs like the A100 and H100. These GPUs are specifically designed with AI acceleration in mind, catering to training and deploying AI models across various applications. Nvidia's dominance in the AI chip market is largely due to their ability to provide high-performance solutions that meet the demands of AI workloads.

2. Google (Alphabet)

Google, under its parent company Alphabet, focuses on purpose-built AI accelerators. These include Cloud TPUs that power their Cloud Platform services and Edge TPUs designed for smaller edge devices. Google's AI chips are designed to provide high-speed, efficient processing for AI tasks, making them a key player in the AI chip market.

3. Advanced Micro Devices (AMD)

AMD offers a range of processors, but their dedicated AI focus lies in the EPYC CPUs with AMD Instinct accelerators. These chips cater to AI training and high-performance computing workloads in data centers. Additionally, AMD offers AI-enabled graphics solutions like the Radeon Instinct MI300, further solidifying their position in the AI chip market.

4. Amazon (AWS)

Amazon, despite entering the AI chip market later than some competitors, has emerged as a significant chip maker. Their Tranium chips, designed for model training, and Inferentia chips, used for inference within their AWS cloud services, showcase their commitment to efficient, scalable solutions for AI workloads in the cloud.

5. Intel

Intel, the largest CPU player, has newer dedicated AI offerings. Their Gaudi accelerator processors, planned for release in 2024, focus on AI in data centers. Intel's entry into the AI chip market signifies their commitment to providing high-performance, efficient solutions for AI workloads.

Video: Intel launched the world's first systems foundry for the AI era at the Intel Foundry Direct Connect event, reinforcing its position as a leading AI chip maker.

6. Alibaba

Alibaba offers AI chips like the Hanguang 800, designed for inference within their Alibaba Cloud platform. Alibaba's AI chips are designed to provide efficient, high-speed processing for AI tasks, making them a key player in the AI chip market.

7. IBM

IBM focuses on AI chips like the AIU (artificial intelligence unit), designed for their Watson.x generative AI platform. They also leverage their Telum processors for AI processing in mainframe servers, demonstrating their commitment to providing high-performance, efficient solutions for AI workloads.

8. Cerebras Systems

Cerebras Systems is known for their unique Wafer-Scale Engine (WSE) series, offering some of the largest AI chips. These chips are ideal for tackling large-scale AI models in research and scientific computing, demonstrating Cerebras Systems' commitment to pushing the boundaries of AI chip design.

9. Graphcore Limited

Graphcore Limited specializes in AI accelerators, offering their Intelligence Processing Unit (IPU). This chip is specifically designed for large-scale AI training and inference workloads, demonstrating Graphcore's commitment to providing high-performance, efficient solutions for AI tasks.

10. SambaNova Systems

SambaNova Systems focuses on software-defined hardware, offering its Reconfigurable Dataflow Processing Unit (RDPU). This chip is designed for efficient AI training and inference across various applications, demonstrating SambaNova's commitment to providing flexible, efficient solutions for AI workloads.

11. Mythic

Mythic offers low-power AI processors that are specifically designed for edge computing applications. These processors are designed to provide efficient, high-speed processing for AI tasks in edge devices, demonstrating Mythic's commitment to providing high-performance, efficient solutions for AI workloads in edge computing.

12. Tenstorrent (Grayskull)

Tenstorrent, while not as widely known, offers the Grayskull processor. This processor targets cloud and data center AI workloads, with a focus on efficient performance and power consumption. Tenstorrent's Grayskull processor demonstrates their commitment to providing high-performance, efficient solutions for AI tasks in the cloud and data centers.

13. Groq (TSP)

Groq, a relatively new player in the AI chip market, offers its Tensor Streaming Processor (TSP). This processor is designed for high-performance AI training and inference in data centers, demonstrating Groq's commitment to providing high-performance, efficient solutions for AI workloads.

14. Lightmatter (Envise)

Lightmatter, another emerging company, focuses on developing energy-efficient AI chips. They offer their Envise processor for cloud and edge AI applications. Lightmatter's Envise processor demonstrates their commitment to providing energy-efficient, high-performance solutions for AI tasks in the cloud and edge devices.

15. Qualcomm Incorporated (Snapdragon)

Qualcomm, a major player in the mobile AI chip market, is known for its Snapdragon processors. These processors integrate AI capabilities for on-device machine learning tasks on smartphones and other mobile devices. Qualcomm's Snapdragon processors demonstrate their commitment to providing high-performance, efficient solutions for AI tasks on mobile devices.

16. Apple Inc. (Neural Engine)

Apple, while not explicitly an AI chip maker, designs and manufactures its custom-designed Neural Engine chips. These chips are integrated into their iPhones, iPads, and Macs, enabling on-device AI tasks. Apple's Neural Engine chips demonstrate their commitment to providing high-performance, efficient solutions for AI tasks on their devices.

18. Microsoft Corporation

Microsoft, similar to Apple, doesn't solely manufacture dedicated AI chips. However, they utilize various AI chips, including those from NVIDIA and AMD, within their cloud computing services. Microsoft's use of AI chips demonstrates their commitment to providing high-performance, efficient solutions for AI tasks in the cloud.

19. Xilinx, Inc. (Acquired by AMD) (Alveo)

Xilinx, known for its FPGAs, offered AI acceleration capabilities through its Alveo platform. While now part of AMD, their contributions to AI chip flexibility remain significant. Xilinx's Alveo platform demonstrates their commitment to providing flexible, high-performance solutions for AI tasks.

20. Samsung Electronics Co., Ltd. (Exynos, Samsung AI chips)

Samsung, a major player in the mobile AI chip market, offers its Exynos processors and AI solutions for data centers and edge computing through their Samsung AI chips. Samsung's Exynos processors and AI chips demonstrate their commitment to providing high-performance, efficient solutions for AI tasks on mobile devices and in data centers.

21. Huawei Technologies Co., Ltd. (Ascend)

Despite facing challenges, Huawei remains a notable contributor to the AI chip market with its Ascend series of AI processors. These processors are designed for various applications, from cloud and data centers to edge devices. Huawei's Ascend processors demonstrate their commitment to providing high-performance, efficient solutions for AI tasks in various applications.

22. Meta (Facebook)

Meta, formerly known as Facebook, has made significant strides in the AI chip market. They've developed custom AI hardware like the Kings Canyon AI Research SuperCluster (RSC) for large-scale AI model training. Meta's AI chips are designed to support the company's various AI initiatives, including content recommendation, speech and image recognition, and virtual reality applications. Their commitment to advancing AI technology makes them a noteworthy player in the AI chip market.

23. TSMC

Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated independent semiconductor foundry. As a key supplier for many top tech companies, TSMC has a significant influence on the AI chip market. They produce a wide range of chips, including those used for AI applications. TSMC's advanced manufacturing capabilities and commitment to innovation make them a major player in the AI chip industry.

17 Facts & Statistics about AI Chips

Here are 17 facts and statistics about Ai Chips:

  1. Advanced semiconductor chips are essential for various digital applications, including smartphones, laptops, and industrial and automotive applications.
  2. The AI chips market was valued at 53.5 billion U.S. dollars in 2023 and is expected to grow by almost 30 percent in 2024, reaching over 67 billion U.S. dollars.
  3. AI technologies require specialized AI chips that are more powerful, efficient, and optimized for advanced machine learning algorithms.
  4. AI chips support various use cases, including image recognition, recommendation engines, natural language processing, and autonomous vehicles.
  5. AI chips are increasingly being used in consumer devices like smartphones, laptops, and wearables, and in enterprise markets such as robotics and sensors.
  6. Nvidia is a leading name in the development of AI chips, with its chips being used to train and run various large language models, including the one developed by OpenAI.
  7. GPUs are the favored chips for AI applications due to their ability to perform millions of mathematical operations in parallel.
  8. Tech firms like Microsoft, Amazon, and Google are innovating in the AI chips space. For example, Google has produced the Tensor Processing Unit (TPU), an application-specific integrated circuit developed specifically for AI activities.
  9. The AI chip market size in 2024 is expected to be 67.2 billion USD.
  10. The semiconductor market is expected to grow by 13.1% in 2024.
  11. Nvidia is the leading semiconductor company by market cap in 2024.
  12. The semiconductor market size in 2024 is expected to be 588 billion USD.
  13. The top semiconductor applications in 2025 are expected to be smartphones, servers, data centers, and storage.
  14. The logic semiconductor market size in 2024 is expected to be 191.7 billion USD.
  15. Nvidia's data center revenue in Q4 FY2024 is expected to be 18.4 billion USD.
  16. AMD's data center revenue in Q4 2023 is expected to be 2.3 billion USD.
  17. Intel's data center revenue in Q4 2023 is expected to be 4 billion USD.

Sources: Statista, The Brainy Insights, and Market.us.

Top 23 AI Chip Makers of 2024 - Statistics & Facts

This is an article written by:

Passionate SEO expert, Torbjørn Flensted, boasts two decades of industry experience. As the founder of SEO.ai and having run an SEO agency for 13 years, he's spent the last decade pioneering cutting-edge tools, transforming how agencies and professionals approach Search Engine Optimization.