More than 120 companies are developing AI processor chips, covering devices from embedded IoT-class parts to hyperscale datacenter accelerators. Interest in training and deploying AI models surged after the release of ChatGPT, driving heavy demand for GPUs, especially those from Nvidia. Neural processing units (NPUs) embedded in some desktop and laptop CPUs offer alternative options for inference. The United States hosts roughly half of the firms, with China and India also advancing domestic chip efforts and an Indian GPU program targeting 2029 production. Collectively these firms have raised over $13.5 billion, with many securing $100 million-plus funding rounds.
According to Jon Peddie Research (JPR), there are no fewer than 121 companies now talking about producing AI processors, ranging from tiny chips targeting embedded applications and Internet of Things (IoT-class) devices, right up to hyperscale datacenter products. JPR's Q3 2025 AI Processors Market Development Report finds that the US currently leads, as you might expect, with at least 59 of those companies hailing from the land of the not-so-tariff-free.
While America remains out in front, China's DeepSeek and Huawei continue to push their own advanced chips, and India has also announced an indigenous GPU program, with production targeted for 2029, JPR says. Within the US itself, California and Texas are the hotbeds of development activity, with California home to no fewer than 42 of the AI chip firms based in the country.
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