LONDON, July 31,
2024 /PRNewswire/ -- The market for AI
accelerator chips such as GPUs is on fire, having grown from
$10bn in 2022 to $78bn this year. Can it last? Omdia's latest
research note, Reconciling AI hardware spending with
applications revenue growth, examines whether the AI
applications that are meant to justify this massive investment are
generating enough revenue to sustain it.
Omdia's Principal Analyst for Advanced Computing, Alexander
Harrowell said: "At least in the short term, infrastructure
investment is consuming a very large percentage of the revenue from
AI applications. Our forecasting suggests that there is likely to
be a squeeze next year as growth in infrastructure spending peaks,
when nearly all the revenue on the application side will be going
out to the chip makers."
"In the long run, AI infrastructure spending growth has to
converge with the growth rate of AI applications; it's the
applications that pay the bills. The question is whether this is
achieved by the applications increasing their monetization or the
infrastructure spending slowing down. There is also a twist in that
now the race for size in AI models has cooled off, comparable
models are getting more efficient from generation to generation.
This is helpful for the applications' unit economics but a headwind
for chip demand."
ABOUT OMDIA
Omdia, part of Informa Tech, is a technology research and
advisory group. Our deep knowledge of tech markets combined with
our actionable insights empower organizations to make smart growth
decisions.
Fasiha Khan:
Fasiha.khan@informa.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/omdia-is-ai-applications-revenue-growing-fast-enough-to-warrant-the-scale-of-investment-in-gpus-302210939.html
SOURCE Omdia