Source URL: https://www.theregister.com/2025/02/12/trendforce_ai_servers/
Source: The Register
Title: Running hot? Server shipments forecast to cool in 2025
Feedly Summary: Supply chain and regulatory hurdles likely to shrink figures
US tech sanctions and supply chain readiness for racks of Nvidia’s latest gear will likely cause AI server sales to cool-off in 2025.…
AI Summary and Description: Yes
Summary: The text discusses the current and projected market trends for AI server sales, particularly in light of US tech sanctions, supply chain issues, and strategic shifts by major cloud service providers. This insight could be critical for professionals in AI and cloud security as it highlights potential vulnerabilities and opportunities within infrastructure security.
Detailed Description:
The text examines the anticipated trajectory of AI server sales, detailing various market dynamics and factors affecting growth in the upcoming year. Key points include:
– **Market Growth and Trends**:
– Shipments of AI-configured systems surged by 46% last year due to robust demand from cloud service providers (CSPs).
– Anticipated customer demand for AI has significantly driven a 48% increase in spending on public cloud infrastructure during 2024.
– Notable sales success from companies like Foxconn, attributed to AI server demands, indicates a strong market pull.
– **Forecasted Scenarios for 2025**:
– A likely expansion in the AI server market with annual growth expected to exceed 30%.
– The worst-case scenario foresees a slowdown to a growth rate of 20-25% due to regulatory uncertainties and potential supply chain delays.
– **Influencing Factors**:
– Stricter US regulations on AI chip exports to China are raising market uncertainty.
– Complex designs of Nvidia’s new rack systems may delay deployment until the latter half of the year.
– Proactive US-China collaboration could potentially counter certain regulatory challenges, possibly accelerating AI deployments.
– **Technological Influences**:
– The emergence of DeepSeek is projected to alter the landscape: it could lead to greater adoption and deployment of AI technologies, particularly driving growth in edge AI.
– There’s a shift toward lower-cost proprietary chips with a focus transition from AI training to AI inferencing, altering the composition of the server market.
– **Segmentation of AI Server Customers**:
– The market is expected to become more segmented, where major cloud service providers continue to invest in high-performance solutions while enterprises seek more cost-effective options.
This analysis provides valuable insights for security, compliance, and technology professionals working in the AI and cloud sectors, informing them about potential market shifts, regulatory challenges, and the evolving technological environment surrounding AI infrastructure.