August 23, 2023 /SemiMedia/ -- According to Gartner's latest report, the market for chips used to execute artificial intelligence (AI) workloads is growing at a rate of more than 20% per year.

Gartner predicts that the AI chip market will reach US$53.4 billion in 2023, an increase of 20.9% over 2022, and will increase by 25.6% to US$67.1 billion in 2024. By 2027, AI chip revenue is expected to more than double the size of the market in 2023, reaching $119.4 billion.

In the consumer electronics market, Gartner analysts estimate that AI application processors used in devices will be worth $1.2 billion by the end of 2023, up from $558 million in 2022.

According to Gartner, large-scale deployment of custom AI chips will replace the current dominant chip architecture for a variety of AI-based workloads, especially those based on generative AI techniques. In the longer term, Gartner expects demand for custom-designed AI chips to increase as hyperscale enterprises seek cost-effective ways to deploy these applications.