Who will be the leader in the AI (artificial intelligence) space and the race in the chip market? We have seen a lot of big moves being made that will ultimately impact how businesses all around the globe interact with technology in the year ahead.
Deloitte suggests generative AI will drive a market surge with generative AI chip sales likely to reach more than $50 billion and software revenue is poised for a $10 billion boost in 2024. Generative AI chip prices are high—if you can even get them—but as supply increases next year, prices could drop even while unit growth stays strong. Nearly all enterprise software companies will integrate generative AI into at least some of their offerings in 2024, according to Deloitte.
At the end of the day, the race for AI has many twists and turns. Right now, the enterprise has to be careful about their investments and what they do. Many companies hope to be No. 1 in this race, but they have a lot to do to get there.
Consider the example of Intel. This is one company that has thrown its hat in the ring with its new 5th Gen Xeon Processors. As Lisa Spelman, corporate vice president and general manager Intel Xeon Products at Intel Corp., said at an event I recently attended, “The Xeon journey has been a continuous evolution and investment in both our hardware and software portfolio.”
For example, the company aims to deliver a developer experience that allows them to build and deploy and get value from AI everywhere—from the client edge all the way through to the data center.
This comes at an interesting time too, as there are a confluence of factors making this the perfect storm for adoption. We know the average cost of a data breach now in 2023 is $4.45 million. That is up 15% in just three years.
At the same time, companies are considering greater sustainability efforts. Deloitte suggests sustainability will increase in telecom and semiconductors, with the chip industry taking a smaller byte out of energy and water use thanks to new plants and digital transformation and telcos dialing down the carbon, reducing emissions by 2% by shuttering old networks.
We see Intel look to address these customer pain points by accelerating application performance, improving security foundation, and lowering costs with more energy-efficient compute. An Intel survey says 75% of organizations surveyed say they will have some kind of sustainability initiative in their datacenter infrastructure space in the coming years.
The opportunities are wide and vast for all industries. “I like to think of it as Xeon the chip is horizontal and our solutions with our partners go vertical. That is how we approach the market,” says Spelman.
Here is the reality though. We all recognize gen AI is a transformative technology. It will change the way companies do business at the enterprise. And this is only the beginning. We are only on the first leg of this race, and we need to be prepared for it to continue to change and evolve. Where are you on your AI journey? It is something to consider as we move into 2024 and beyond.
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