Recent research has revealed a surge in the number of companies venturing into the AI processor chip market, now exceeding a hundred entities. Following the release of ChatGPT by OpenAI over two years ago, the enthusiasm for AI model training has skyrocketed, notably fueled by the potent GPUs from Nvidia.

However, alternatives, like neural processing units embedded in consumer CPUs, present diverse capabilities for AI tasks. With Nvidia’s towering market value, newcomers aspire to disrupt the norm and capitalize on the growing demand in AI chip development.

According to Jon Peddie Research, there are currently 121 companies committed to manufacturing AI processors. These range from tiny embedded device chips to large-scale data center solutions. Domestically, the United States leads with 59 active firms, with China not too far behind. Nevertheless, expectations of market consolidation loom, predicting that only about 25 companies will remain active by decade’s end.

Despite such market saturation, only a fraction of enterprises report tangible returns from their AI investments. New strategic directions are suggested, like Britain’s ambition to spearhead AI chip design globally in the foreseeable future. This development landscape is a critical observation point as players and investors navigate the evolving tech market.