Agentic AI and Inferencing Drive AI Server Market to US$523 Billion by 2030, Despite Tariff Pressures

Hyperscaler CAPEX is set to grow in 2025, topping 2024 levels and injecting growth into the Artificial Intelligence (AI) server market despite the uncertainty from recently introduced trade barriers. According to a new report from global technology intelligence firm ABI Research, on the current trajectory, AI server revenues are set to reach over US$523 billion by the end of the decade. Growth will slow in the mid-decade, partly due to the diminishing returns of frontier generative AI model training but offset by the growth of finetuning and agentic AI. This workload will grow from a relatively small base in 2024 and accelerate to over US$145 billion by 2030.

“As demand for compute infrastructure optimized for frontier training runs wanes, we expect to see money flowing into systems optimized for Agentic AI,” explains Paul Schell, Industry Analyst. “This will increase demand for inference-optimized systems and those handling finetuning workloads. Nonetheless, traditional AI, such as recommendation models and NLP, will remain in the mix, as well as CPU-only AI servers that integrate into existing enterprise software stacks.”

The growth of GPU-only clouds, or neoclouds, such as CoreWeave and Nebius – many of which incorporate specialized AI platforms – are contributing to the revenue growth experienced by established AI server OEMs like Dell, Supermicro, IEIT Systems, Cisco, and HPE, as well as niche vendors such as Penguin Solutions and AMAX.

Schell states, “As the market turns to monetizing AI investments in large multimodal generative AI models with smaller experts, inferencing workloads will scale. This is also driven by developments like DeepSeek in January this year. Tempering this demand is the risk posed by trade restrictions initiated by the US, where many OEMs are headquartered. This is incorporated in our figures and will continue to be monitored.”

These findings are from ABI Research’s AI Server Shipments and Revenue market data report. This report is part of the company’s AI & Machine Learning research service, which includes research, data, and ABI Insights.