Cloud Service Providers to Own 18% of The Total AI Cloud Chipset Market by 2024

During the last two years, several cloud service providers, including Alibaba, Amazon, Facebook, Google, Huawei, and Tencent, have been busy designing their own in-house chipsets for handling Artificial Intelligence (AI) workloads in their data centers. ABI Research, a global tech market advisory firm, estimates that cloud service providers commanded 3.3% market share of the total AI Cloud chip shipments in the first half of 2019. These players will increasingly rely on their own in-house AI chips and will be producing a total of 300,000 cloud AI chips by 2024, representing 18% of the global cloud AI chipsets shipped in 2024. The increasing requirements for intelligent services by many enterprise verticals are pushing cloud service providers to rapidly upgrade their data centers with AI capabilities, which has already created an enormous demand for cloud AI chipsets in recent years. ABI Research expects revenues from these chipset shipments to increase significantly in the next five years, from US$4.2 billion in 2019 to US$10 billion in 2024.