The artificial intelligence sector is experiencing rapid expansion, with projections estimating the global AI market could reach $900 billion by 2026. This growth is driven by increasing AI adoption across various industries, advancements in hardware capabilities, and innovative training and modelling techniques. Datacentre accelerator markets alone are expected to exceed $300 billion by 2026.
However, this breakneck pace may strain the industry. AI companies, particularly those focused on research, are burning through significant capital. Custom AI accelerators are gaining traction, potentially impacting established players. Geopolitical factors, such as US-China competition, also influence the AI chip ecosystem.
Looking ahead, the focus is shifting towards implementing AI to improve cost structures and integrate AI agents into enterprise applications. Edge AI, running locally on devices, is expected to surge, potentially triggering hardware upgrades. Companies that can effectively harness AI are poised to thrive, while those that lag risk being displaced.
