The Three Stages of AI Development

The first stage of AI development is focused on investing in large language models and training them using graphics processing chips (GPUs). This stage is currently dominated by NVIDIA as the sole provider of GPUs for AI services. The second stage, which is expected to start next year, will involve the implementation of inference capabilities, potentially using application-specific IC and ASIC chips. The third stage, referred to as the 'blue sky scenario,' involves the development of edge AI, where AI functionality can be performed on local devices, leading to potential growth in the smartphone and PC markets.