AI Chip Making is the New Gold Mine for Startups Looking for Profit

AI Chip Making is the New Gold Mine for Startups Looking for Profit

AI is the new greenfield open-source business opportunity, and the adoption of AI chips has risen.

An AI chip includes graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs) that are specialized for artificial intelligence. AI chips are built with specific architecture and have integrated AI acceleration to support deep learning-based applications. The adoption of AI chips has risen, with AI chipmakers designing different types of these chips to power artificial intelligence applications.

AI is the new greenfield open-source business opportunity. AI is poised to drive China's economy forward toward higher levels of growth. China plans to launch a national AI plan, which will strengthen AI development and application, and introduce policies to contain risks associated with AI. Though China may be a large potential market for companies. The steady drumbeat of restrictions on various chip-related technology exported to China. The new era in Silicon Valley centers on artificial intelligence and robots, a transformation that many believe will have a payoff on the scale of the personal computing industry.

The gold rush for AI:

AI chips, which are semiconductors designed to accelerate machine learning, have many applications.  Coming up alongside the AI industry behemoths including AMD, NVIDIA, Google, and Intel, there is a slew of startups that are getting in the game with unique offerings. Even Silicon Valley's biggest social media companies are now getting into artificial intelligence, as are other tech behemoths. Facebook is using AI to improve its products.

AI chip startup SambaNova Systems signed a $10 million deal for the company's hardware. Nvidia and AMD received AI chips which prompted Goldman Sachs' analysts to ask nearly every chip company present about the potential effects on their business.  One of the most interesting presentations was from Meta's recently hired VP of infrastructure engineering Alexis Bjorlin, who outlined how the company deploys AI at the gigantic scale necessary. The infrastructure engineering Alexis Bjorlin company plans to build AI training clusters with roughly 4,000 accelerators.

Silicon Valley's financiers and entrepreneurs are digging into artificial intelligence with remarkable exuberance. Funding for AI start-ups has increased. AI is a melting pot of shared research and open-source foundational elements that, when cobbled together and customized, help create AI tools and products. Both technology and car companies are making claims that increasingly powerful sensors and AI software will enable cars to drive themselves with the push of a button by the end of this decade.

Silicon Valley's new AI era underscores the region's ability to opportunistically reinvent itself and quickly follow the latest tech trend. This is at the heart of the region's culture that goes back to the Gold Rush. The valley is built on the idea that there is always a way to start over and find a new beginning. With the rise in demand for smart everything from cars and homes to cities, no doubt, the AI chip market is about to get bigger.

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