Counterpoint Research says the race to build custom AI silicon is accelerating, with hyperscalers scaling internal chips to meet surging demand.
Leading cloud and AI providers, including Alphabet Inc.’s (NASDAQ:GOOGL) Google; Amazon.com, Inc.’s (NASDAQ:AMZN) Amazon Web Services; Microsoft Corp (NASDAQ:MSFT); OpenAI; ByteDance and Apple Inc (NASDAQ:AAPL), are rapidly expanding deployments of AI server compute Application-Specific Integrated Circuit (ASIC) based systems to handle specialized training and inference workloads, as per Counterpoint Research.
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Counterpoint Research projects that AI server compute ASIC shipments among the top 10 hyperscalers will triple between 2024 and 2027, fueled by surging demand for Google’s Tensor Processing Unit (TPU) infrastructure supporting Gemini, continued scaling of AWS Trainium clusters, and volume ramps from Meta Platforms Inc.’s (NASDAQ:META) MTIA and Microsoft’s Maia chips as they build out internal silicon portfolios.
Counterpoint expects Broadcom Inc (NASDAQ:AVGO) to remain the top AI server compute ASIC design partner, holding about 60% market share in 2027, despite competition from the growing Google–MediaTek alliance.
At the same time, the firm sees Marvell Technology Inc (NASDAQ:MRVL) facing design-win pressure, with its design services share projected to slip to around 8% in 2027, despite shipments doubling over the same period.
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Google’s TPU fleet will continue to anchor industry volumes, according to Counterpoint, as the compute demands of training and serving next-generation Gemini models drive sustained internal silicon investment.
While Google’s market share may ease as the total addressable market expands and rivals scale their own chips, TPUs will remain the core backbone of AI server compute ASIC deployments, as per Counterpoint.
The market itself is shifting structurally.
The AI server compute ASIC shipments are pivoting from a concentrated duopoly led by Google and AWS in 2024 toward a more diversified landscape by 2027, stated Counterpoint.
