The global artificial intelligence chip market is experiencing rapid expansion, projected to reach USD 1.10 trillion by 2035, growing from USD 94.44 billion in 2025 at a 27.88% annual rate. This growth is driven by the demand for high-performance and energy-efficient chips, with key players like NVIDIA, Intel, and AMD at the forefront. North America currently holds a significant market share, accounting for 44% in 2025, while the Asia Pacific region anticipates the fastest growth.
Edge AI, which processes data directly on devices, is a major catalyst, with edge processing contributing 75% of revenue in 2025 and the Edge AI hardware market alone expected to hit USD 51.10 billion by 2035 from USD 9.15 billion in 2025. This shift towards specialized chips like ASICs supports real-time data processing in sectors such as automotive, healthcare, and consumer electronics. Governments worldwide, including India, the USA, the EU, and South Korea, are heavily investing in AI chip development to further this expansion.
Despite the broad investment, successful enterprise AI product adoption hinges on user trust and clear benefits. Ankit Raheja, an AI product expert, highlights that products often fail if they are not explainable or lack customer empathy. He emphasizes that users need to feel empowered and have control over AI-generated outputs, as demonstrated by his success with a GenAI platform at CDK Global. Building trust by allowing users to edit AI results is crucial for adoption.
Concerns about AI disruption are impacting software stocks, with the WisdomTree Cloud Computing Fund down 20% and companies like Salesforce and ServiceNow losing about a quarter of their value this year. Hong Kong-listed tech stocks have also entered a bear market, partly due to fears surrounding new AI tools like Anthropic's legal AI offering. Meanwhile, OpenAI is actively addressing cybersecurity, launching "Trusted Access for Cyber" on February 5, 2026, which uses its GPT-5.3-Codex model to help defensive teams find and fix software weaknesses, backed by $10 million in API credits.
Global investment in AI is surging, with total spending expected to exceed USD 500 billion this year, driven by the need for computing power and large infrastructure. Businesses are also consolidating fragmented IT systems using iPaaS platforms to handle the data and speed requirements of AI. Beyond enterprise and chips, AI is finding diverse applications, from potentially helping people without lawyers in Georgia, as suggested by Chief Justice Nels Peterson, to improving crew operations on the International Space Station through speech-to-text tools tested by Roscosmos cosmonauts. Pony AI, an autonomous driving leader, is also preparing for a shareholder vote on a share consolidation on April 2, 2026, as it scales its robotaxi and autonomous trucking solutions.
Key Takeaways
- The global AI chip market is projected to reach USD 1.10 trillion by 2035 from USD 94.44 billion in 2025, growing at a 27.88% CAGR, with NVIDIA, Intel, and AMD as key players.
- Edge AI hardware market is expected to grow from USD 9.15 billion in 2025 to USD 51.10 billion by 2035, driven by real-time data processing in sectors like automotive and healthcare.
- Ankit Raheja emphasizes that successful enterprise AI products must be explainable, built with customer empathy, and allow users control over AI-generated results to foster trust.
- OpenAI launched "Trusted Access for Cyber" on February 5, 2026, utilizing its GPT-5.3-Codex model and offering $10 million in API credits to bolster cyber defense efforts.
- Fears of AI disruption have caused significant declines in software stocks, with Salesforce and ServiceNow each losing approximately 25% of their value this year.
- Hong Kong-listed technology stocks entered a bear market, partly due to concerns over AI tools like Anthropic's legal AI offering and potential VAT tax increases.
- Global investment in AI is anticipated to surpass USD 500 billion this year, fueled by increased demand for computing power and large infrastructure projects.
- Businesses are consolidating fragmented IT systems with iPaaS platforms to meet the high data and speed demands of AI-powered operations.
- AI is being explored for public service applications, such as potentially assisting individuals without lawyers in Georgia and enhancing International Space Station crew efficiency through speech-to-text tools.
- Autonomous driving leader Pony AI is scheduled to hold an Extraordinary General Meeting on April 2, 2026, for a shareholder vote on a proposed share consolidation.
AI Chip Market to Reach 1.1 Trillion Dollars by 2035
The global artificial intelligence chip market expects significant growth, projected to reach USD 1.10 trillion by 2035 from USD 94.44 billion in 2025. This robust expansion, at a 27.88% annual rate, comes from increasing demand for high-performance and energy-efficient chips. Edge AI and Application Specific Integrated Circuits or ASICs are key drivers, enabling faster data processing in areas like autonomous vehicles. North America currently leads the market, but the Asia Pacific region expects the fastest growth. Major players include NVIDIA, Intel, AMD, Qualcomm, and Samsung.
Global AI Chip Market Forecast to Hit 1.1 Trillion Dollars by 2035
The global artificial intelligence chip market expects to reach USD 1.10 trillion by 2035, growing from USD 121.73 billion in 2026 at a 27.88% annual rate. North America held 44% of the market in 2025, with machine learning and CPU segments leading. Edge processing accounted for 75% of revenue, showing a shift towards specialized chips like ASICs for local AI tasks. Governments worldwide, including India, USA, EU, and South Korea, are investing heavily in AI chip development. This growth is also fueled by the increasing use of AI in autonomous systems across many industries.
Edge AI Hardware Market to Reach 51 Billion Dollars by 2035
The Edge AI Hardware Market is projected to grow significantly, from USD 9.15 billion in 2025 to USD 51.10 billion by 2035. This market expansion is due to more industries adopting AI-powered devices and applications. Edge AI allows for real-time data processing directly on devices, which lowers delays and boosts efficiency. Key sectors driving this growth include automotive, healthcare, manufacturing, and consumer electronics. The SNS Insider report highlights the importance of edge AI hardware for future intelligent applications.
Ankit Raheja Shares Keys to Successful Enterprise AI Products
Ankit Raheja, an AI product expert with 13 years of experience, shares why enterprise AI products often fail. He learned early on at California’s State Compensation Insurance Fund that AI systems need to be explainable and built with customer empathy. At CDK Global, he found success by focusing on the benefits AI provides, making users feel empowered, and giving them control over the AI's output. Raheja emphasizes selling the outcome, not the technology, and allowing users to edit AI-generated queries to build trust. These principles guide his work in developing effective AI solutions across various industries.
Ankit Raheja Reveals Why Enterprise AI Products Fail
Ankit Raheja, an AI product development expert with 13 years of experience, explains common reasons why enterprise AI products fail. He learned from building a fraud detection system in 2013 that AI must be explainable and built with deep customer understanding. At CDK Global, he successfully launched a GenAI platform by focusing on the outcomes for users, making them feel like heroes, and allowing them to control or edit AI-generated results. Raheja believes AI adoption is earned, not forced, and giving users control builds trust in the technology. He now applies these lessons at a Fortune 10 e-commerce retailer.
OpenAI Launches Trusted Access for Cyber Defense
OpenAI introduced "Trusted Access for Cyber" on February 5, 2026, to enhance cybersecurity. This program uses their advanced GPT-5.3-Codex model to speed up finding and fixing software weaknesses. OpenAI aims to ensure these powerful AI tools are used responsibly by defensive teams, not for harm. They are also giving $10 million in API credits to boost cyber defense efforts. Users can verify their identity or enterprises can get access through an OpenAI representative to use these models for high-risk cybersecurity work.
Hong Kong Tech Stocks Fall Amid Tax and AI Concerns
Hong Kong-listed technology stocks have entered a bear market, dropping over 20% from their October peak. Investors worry about a potential increase in VAT tax on internet services and global tech market changes. Fears about AI disrupting software companies, like Anthropic's new legal AI tool, also contribute to the downturn. Some analysts, like Qi Wang from UOB Kay Hian, point to tax concerns, while others, like Phelix Lee from Morningstar, see a mix of negative global news. Despite the drop, some experts believe it is a healthy correction and that Chinese tech fundamentals remain strong with future AI catalysts.
Businesses Consolidate Systems for AI with iPaaS
For years, businesses added many separate technology solutions, leading to complex and costly IT systems. This fragmented approach creates bottlenecks and makes it hard to manage operations efficiently. Now, as companies prepare for an AI-powered future, they realize their current systems cannot handle the large amounts of data and high speeds AI needs. To fix this, organizations are moving away from many different integration tools. They are adopting consolidated, end-to-end platforms like iPaaS to streamline how their systems work together for AI.
AI Fears Cause Software Stocks to Drop Sharply
Software stocks are falling sharply in 2026 due to worries about AI disruption, with the WisdomTree Cloud Computing Fund down 20%. New AI tools, like Anthropic's Claude Cowork, are making investors nervous about how AI will change software companies. Despite this, leaders like Box CEO Aaron Levie say AI is an exciting moment, pushing companies to innovate and offer more to customers. Salesforce and ServiceNow have both lost about a quarter of their value this year. However, some investors and analysts believe these fears are overblown, seeing opportunities in the market.
Georgia Chief Justice Sees AI Helping People Without Lawyers
Georgia Supreme Court Chief Justice Nels Peterson suggested that artificial intelligence might one day help people who cannot afford lawyers. He noted that 54 Georgia counties have ten or fewer attorneys, and eight counties have no lawyers at all. For now, judges are looking into other ways to bridge this gap in legal access. Peterson believes AI will become a valuable tool, and the state must learn how to use it effectively to assist those without legal representation.
Space Station Crew Prepares for Dragon and Tests AI
On February 5, 2026, the International Space Station's Expedition 74 crew had a busy day preparing for the SpaceX Dragon's arrival. NASA astronaut Jasmin Moghbeli worked on Dragon preparations. Roscosmos cosmonauts Sergey Kud-Sverchkov and Sergei Mikaev explored using artificial intelligence to make crew operations more efficient. They tested AI tools for speech-to-text to improve documentation and communication with ground controllers. Kud-Sverchkov also trained as a crew medical officer, learning to use emergency medical equipment like an automated external defibrillator.
Global AI Investment Surges Past 500 Billion Dollars
Global investment in artificial intelligence continues to grow rapidly, driven by the need for more computing power and large infrastructure projects. Major companies have nearly doubled their yearly spending on AI, with total global AI investment expected to exceed USD 500 billion this year. This strong momentum shows confidence in AI's long-term potential, despite some concerns about financial returns. The Alibaba group chairman noted that many companies still find it hard to show a clear return on their AI investments.
Pony AI to Hold Meeting for Share Consolidation Vote
Pony AI Inc., a leader in autonomous driving technology, will hold an Extraordinary General Meeting on April 2, 2026. The meeting will take place at 11:00 a.m. Beijing time in Shenzhen, China. Shareholders will vote on a proposal to approve a share consolidation, which the company's board of directors recommends. Pony AI focuses on bringing safe and reliable autonomous driving solutions, like robotaxis and autonomous trucking, to a large scale. The company has conducted extensive testing in both China and the United States.
Sources
- Artificial Intelligence (AI) Chip Market Size Worth USD 1.10 Trillion By 2035 as High-Performance and Energy-Efficient Chips Gain Traction
- Artificial Intelligence (AI) Chip Market Size Worth USD 1.10 Trillion By 2035 as High-Performance and Energy-Efficient Chips Gain Traction
- Edge AI Hardware Market Size to Worth $248.08 Billion by 2035 | Research by SNS Insider
- Four Industries, One Pattern: Why Enterprise AI Products Keep Failing for the Same Reasons
- Four Industries, One Pattern: Why Enterprise AI Products Keep Failing for the Same Reasons
- Introducing Trusted Access for Cyber
- China's Hong Kong-listed tech stocks enter bear market as tax ands AI fears take hold
- Consolidating systems for AI with iPaaS
- Software experiencing 'most exciting moment' as AI fears hammer the stocks
- Georgia’s chief justice suggests AI could help those without lawyers
- Dragon Preps, Artificial Intelligence, and Medical Gear Fill Crew’s Day
- AI investment shows strong momentum beyond bubble fears
- PONY AI Inc. to Hold Extraordinary General Meeting on April 2, 2026
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