Key Takeaways:

• Cloud AI chipset revenue is surging. The market will grow 65% in 2025 to reach $63.6 billion and is expected to hit $137 billion by 2031, nearly quadrupling in size from 2024.
• Generative AI is the main growth driver. The rise of Gen AI, cloud computing, and AI-optimized silicon is fueling record demand for powerful chipsets that can train and run large AI models.
• GPUs lead the market. Graphics Processing Units remain the top choice for cloud AI workloads, while ASICs are gaining traction and CPUs are growing more slowly.
• Energy use and scalability are key challenges. Power constraints and data center bottlenecks are pushing the industry toward greener designs, hybrid setups, and edge computing.
• Hybrid and multi-cloud strategies are essential. Businesses should invest in flexible cloud infrastructures and monitor fast-moving AI chipset innovations to stay competitive.

According to the latest forecast from ABI Research, the cloud AI chipset market size is set to grow 65% in 2025, reaching US$63.6 billion. Growing at a 21% Compound Annual Growth Rate (CAGR) between 2024 and 2031,  the market is projected to reach US$137 billion by 2031. This translates to a nearly quadrupling of the market size compared to 2024,

The market is expanding rapidly, driven by advancements in Generative Artificial Intelligence (Gen AI), cloud computing, and AI-optimized silicon chipsets. Businesses and organizations are increasingly leveraging cloud AI to train complex Large Language Models (LLMs), run new applications, and integrate Machine Learning (ML) capabilities into their operations.

Electricity consumption in data centers poses one of the biggest decarbonization challenges of our time. On one hand, there is a huge demand for energy-guzzling applications within the Generative Artificial Intelligence (Gen AI) and cloud computing domains. On the other hand, cloud AI technologies require an unprecedented amount of power to run.

Mobile World Congress (MWC) 2025 promises to be a landmark event, marking a dramatic shift in focus from communications to computing. In the midst of this transformation, ABI Research anticipates that the tech show will shine a spotlight on the growing rift between China and the West, with a special focus on how telcos are embracing platforms that can power next-gen applications, especially in the realm of Artificial Intelligence (AI).

As we inch closer to Mobile World Congress (MWC) 2025, network Application Programmable Interfaces (APIs) are a hot ticket item within the telecoms industry. They are a way for telco operators to provide developers with access to network capabilities, enhancing user experience and offering more efficient services, while unlocking new features otherwise not possible. APIs have unlocked opportunities across supply chains, with notable successes including app stores like Apple's and Google's, cloud services like Amazon Web Services (AWS) and Azure, and various consumer and enterprise services.

Technological advancements in cellular standards have been the hallmark of MWC for 2 decades, dating back to the 2G and 3G eras. This year, that will change for many reasons:

Mobile World Congress (MWC) 2025 is fast approaching, and ABI Research will be there once again to witness the latest innovations shaping the future of mobile technology. Based on numerous pre-briefings ahead of Barcelona, our analysts are calling the most dramatic shift in MWC's history: watch the telecoms industry finally shed its old skin. Computing and Artificial Intelligence (AI) are not just joining the party, they are taking over the entire show.

The technology landscape is evolving rapidly, with new innovations shaping industries and driving global digital transformation. In 2025, businesses and solution providers will need to adapt to new technology trends if they want to stay one step ahead.

Generative Artificial Intelligence (Gen AI) radically changes how supply chain leaders manage operations. Gen AI’s ability to analyze vast datasets and identify patterns enables organizations to accurately forecast future demand, automate document generation, and pinpoint logistical bottlenecks. Moreover, Gen AI tools allow supply chain managers to simulate specific scenarios so that they are prepared for unforeseen events (e.g., natural disasters, geopolitical tension, etc.).

The year 2024 provided numerous technology trends shaping the future of nearly every industry. ABI Research analysts have been covering these developments for some time, and now it’s time to reflect upon our studies in our annual trends whitepaper. Before we dive into the list, here’s a statement from Stuart Carlaw, Chief Research Officer: