The AI hardware market is booming, driven by demand for specialized chips that can handle complex machine learning tasks. Companies such as NVIDIA, AMD, and emerging startups are rolling out new processors designed specifically for AI workloads, offering massive gains in speed and efficiency compared to traditional CPUs.

These chips are essential to powering everything from generative AI platforms to autonomous vehicles, and their development is fuelling competition among global tech giants. As supply chains recover from recent disruptions, governments are also pushing for domestic semiconductor production to secure access to these strategic technologies.

The future of AI will hinge not just on software innovations but also on the hardware capable of supporting increasingly data-intensive models. This interplay between hardware and software will be a critical driver of AI’s next phase of growth.