United States AI Chip Market to Soar to US$ 335 Billion by 2031: Innovations in GPUs, TPUs, and Neuromorphic Processors Driving Next-Gen AI Workloads

The global Artificial Intelligence (AI) Chip market was valued at US$ 25.12 billion in 2022 and is estimated to grow at a CAGR of 38.41% during the forecast period (2024-2031) to reach a value of US$ 335.02 billion in 2031.

The Artificial Intelligence Chip market includes processors designed to accelerate AI workloads, such as machine learning and deep learning. These chips, including GPUs, TPUs, and neuromorphic processors, enable faster computation and energy efficiency. Rising adoption of AI in data centers, edge devices, and autonomous systems drives market growth. Innovations in semiconductor design and integration with cloud platforms enhance performance. Expanding use in healthcare, automotive, and robotics further supports adoption.

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☛ Artificial Intelligence Chip Market Recent Developments 2025:

United States: Recent Industry Developments

✅ In September 2025, Groq secured $750 million in funding, elevating its valuation to $6.9 billion. The company aims to provide high-speed, low-cost AI inference solutions, challenging Nvidia's market dominance.

✅ In September 2025, OpenAI announced plans to mass-produce its first custom AI chip in collaboration with Broadcom. The chip, designed for internal use, marks a significant step in OpenAI's hardware strategy.

✅ In March 2024, EnCharge AI partnered with Princeton University, supported by the U.S. Department of Defense, to develop advanced AI processors using in-memory computing techniques.

Japan: Recent Industry Developments

✅ In May 2025, Arm Holdings, under SoftBank, announced plans to launch AI chips by 2025. The company aims to develop a prototype by spring 2025, with mass production expected by autumn 2025.

✅ In March 2024, EnCharge AI's partnership with Princeton University received support from Japan's Ministry of Defense, indicating international collaboration in AI chip development.

✅ In January 2025, Japan's Ministry of Economy, Trade, and Industry (METI) announced a $500 million fund to support AI chip startups, aiming to bolster domestic AI hardware capabilities.

☛ Artificial Intelligence Chip Market Trends:

Major AI Chip Innovations

1. NVIDIA Blackwell Ultra & Vera Rubin Series
NVIDIA has introduced the Blackwell Ultra GPU, offering enhanced performance for AI workloads. Looking ahead, the Vera Rubin series is set to deliver significantly higher performance, with the Vera Rubin Ultra planned for release in 2027, promising further advancements in AI processing capabilities.

2. Huawei Atlas 950 SuperCluster
Huawei unveiled the Atlas 950 SuperCluster, a next-generation data center AI system capable of delivering 1 FP4 ZettaFLOPS for AI inference and 524 FP8 ExaFLOPS for AI training. This system comprises 64 Atlas 950 SuperPoDs, each housing 8,192 Ascend 950DT AI accelerators, totaling 524,288 chips across more than 10,000 interconnected cabinets.

3. AMD's Open AI Ecosystem
AMD has introduced a comprehensive approach to AI, detailing new silicon, software, and systems aimed at providing unmatched flexibility and performance. This initiative includes partnerships with major tech companies to deliver advanced AI solutions across various platforms.

4. NVIDIA Dynamo Inference Framework
NVIDIA launched Dynamo, an open-source inference framework designed for high-throughput, low-latency deployment of generative AI models in distributed environments. This framework utilizes innovations such as disaggregated inference stages and dynamic GPU scheduling to optimize performance and reduce costs.

5. Huawei's AI Chip Roadmap
Huawei has unveiled its AI chip roadmap, including the upcoming Ascend 950 series, with variants launching in 2026, followed by the Ascend 960 in 2027 and the Ascend 970 in 2028. These developments aim to enhance China's self-reliance in AI computing power and challenge existing market leaders.

☛ Artificial Intelligence Chip Market Competitve Landscape:

NVIDIA Corporation, Intel Corporation, Advanced Micro Devices Inc.(AMD), MediaTek Inc, Google, Samsung Electronics Co Ltd, Qualcomm Technologies Inc., Alphabet Inc., INTERNATIONAL BUSINESS MACHINES CORPORATION, Cambricon Technologies.

Research Methodology

We follow a hybrid research approach, combining qualitative insights with rigorous quantitative analysis to deliver reliable and comprehensive market intelligence. Our process begins with extensive secondary research, drawing on trusted industry reports, proprietary databases, and credible market sources. This is then reinforced through targeted primary research, including structured surveys and in-depth interviews with industry leaders, subject matter experts, and key market participants.

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☛ Segment Covered in the Artificial Intelligence Chip Market:

By Chip: Graphics Processing Unit (GPU), Application-Specific Integrated Circuit (ASIC), Field-Programmable Gate Array (FPGA), Central Processing Unit (CPU), Others.

By Processing: Cloud, Edge.

By Technology: System On Chip, System in Package, Multi Chip Module, Others.

By Application: Nature Language Processing, Robotics, Computer Vision, Network Security, Others.

By Industry Vertical: Media and Advertising, BFSI, IT and Telecom, Retail, Healthcare, Automotive and Transportation, Other.

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☛ Regional Analysis for Artificial Intelligence Chip Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

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