JPR Publishes AI Processor Report

Graphics industry watcher Jon Peddie Research (JPR) has just published a report titled "AI Processors Market Development – a report on the AI processors market segment."

The report identifies 121 companies that are making or planning to make an AI processor, from tiny IoT-class devices to hyperscale data center accelerators. According to the report, "These firms have attracted more than $13.5 billion in startup funding since 2006, with dozens raising $100 million or more in the past year alone."

Jon Peddie, President of JPR, noted, "AI processors are experiencing a Cambrian explosion, reminiscent of the 3D graphics boom of the late 1990s and the XR wave of the 2010s. We expect rapid consolidation in the coming years, with the 121 players we track today shrinking to around 25 survivors by the end of this decade.”

While the U.S. chipmakers are currently in the lead with 59 firms, JPR warns of a looming threat. "China’s DeepSeek and Huawei continue to push advanced chips, India has announced an indigenous GPU program targeting production by 2029, and policy shifts in Washington are reshaping the playing field. In Q2, the rollback of export restrictions allowed US companies like NVIDIA and AMD to strike multibillion-dollar deals in Saudi Arabia."

Previously leading chip makers were banned from selling AI processors to China, but in August, NVIDIA and AMD made a deal with the U.S. government, by agreeing to pay 15% of the China revenues to the government to secure export licenses. 

Peddie described the report as "a field guide to the future of silicon.”

The Q3 2025 AI Processors Market Development Report, priced $4,000, is available to JPR subscribers.