Predictions for the Future of AI Chip Market and Efficiency Improvements

In the next two quarters, there will be increased competition in the AI chip market with NVIDIA facing more challengers. AMD needs to act decisively and develop a deterministic AI chip. Software and code improvements have led to increased efficiency in building language models, reducing the need for expensive GPU and CPU. Narrower and deeper models with constrained datasets are delivering better outcomes. As performance improves and costs decline, the demand for AI technology will increase nonlinearly. Cloud independent models are being developed, enabling running inference on small machines at a lower cost and changing the applications of AI.