AI Server Market to Attain $150 Billion by 2027

Demand for generative AI companies is skyrocketing and driving the necessity for AI servers and machines which can be considerably completely different from conventional servers. The class is rising so shortly that gross sales of AI servers are set to achieve $150 billion in 2027, based on Liu Yangwei, the chairman of Foxconn, the world’s largest electronics manufacturing service (EMS) supplier.

AI servers are a comparatively new class of information center-grade merchandise that use compute GPUs or specialised processors geared up with quick reminiscence, so that they are usually significantly costlier than conventional servers for information middle and enterprise workloads. Demand for varied generative AI functions is driving demand for such machines so quickly that the AI server market will develop from $30 billion in 2023 to a staggering $150 billion by 2027, mentioned Liu Yangwei on the earnings name with analysts and buyers this week, experiences Commercial Times.

To place the $150 billion quantity into context, the entire server market worth reached $123 billion in 2022 and is poised to develop to $186 billion in 2027, based on IDC. If estimates by the Foxconn chairman transform right, then the market of AI servers will probably be corresponding to the market of conventional servers in 4 years. This fourfold enhance in simply 4 years underscores the explosive demand and the huge alternatives it presents for business gamers, together with Foxconn.

Foxconn recognized cloud service suppliers (CSPs) as the principle shoppers for AI servers. Cloud giants like Amazon Net Companies, Google, and Microsoft Azure constantly search superior server options to boost their service choices and cater to the rising AI wants of their prospects. Whereas branded server makers contribute to the demand, CSPs stay the dominant pressure driving the expansion of the AI server market.

The chairman of Foxconn revealed that the corporate holds over 70% of the market share within the AI server business’s front-end GPU modules and boards and that it has long-standing relationships with North American CSPs. Since Foxconn has manufacturing amenities within the U.S., together with the well-known manufacturing unit in Wisconsin, it could possibly provide localized companies to prospects like AWS, Google, and Microsoft, a definite aggressive benefit. 

Supply: Commercial Times (by way of Dan Nystedt)