Having just entered 2024, the outlook for the computing power market is undoubtedly exciting. With the rapid development of AI technology and the rapid rise of the edge computing industry, the size of China's computing market is expected to expand significantly in the next few years. This market with strong growth momentum will undoubtedly become the focus of global attention.
It is expected that by the end of 2024, the scale of China's computing power will achieve significant growth, and the compound growth rate may remain at a high level (such as 18. mentioned in the Action Plan for the High-Quality Development of Computing Infrastructure).5%), the scale of new computing power is expected to approach or reach 40 eflops, setting a new benchmark for the high-quality development of global computing infrastructure.
The following 7 aspects are the main reasons for the growth of the computing power market.
AI ignites the engine of computing power growth.
In 2024, AI technology is becoming a powerful driver of computing power growth. In February, OpenAI released its first-class generative model, Sora, which not only inherits the image quality of DALL·E 3, but also creates realistic and imaginative scenes based on text instructions. This was followed by the launch of GEMMA, the world's most powerful and lightweight open-source model series, which is available in two versions with 2 billion parameters and 7 billion parameters, and stands out from other models in its class with its lightweight and high performance. At the same time, stable diffusion 30 has also joined this wave of technological innovation, further driving the development of generative AI.
The widespread adoption of AI technology, the increased need for AI security and management, and the growing importance of AI in software development and IT spending all bode well for the rapid growth of the computing power market. According to Gartner**, by 2026, more than 80% of enterprises will deploy applications in production using APIs or models for generative AI.
In addition, the democratization of AI has made the need for AI trust, risk, and security management (TRISM) even more urgent. AI-enhanced development will also use technologies such as generative AI, machine learning, and more to assist software engineers in app design, coding, and testing.
IDC expects that by 2027, the total global investment in AI will reach $423.6 billion, of which China is expected to account for nearly 9% of the global total investment, reaching $38.1 billion. By 2026, China's top 500 companies will spend more than 30% of their core IT spending on AI, driving double-digit growth in product innovation and process improvement. AI is permeating and reshaping core enterprise IT architectures and processes.
Edge computing is on the rise.
The edge computing market in China is about to usher in significant growth, with the market size expected to exceed 300 billion to 400 billion yuan, and with the widespread deployment of AI applications, edge computing will become the new infrastructure for an intelligent and connected world.
Enterprise-level large-scale model evolution.
It is expected that by 2024, the application of AI large models by companies in different industries will become more common, and the number of enterprises with parameters jumping from 100 billion to trillion is expected to increase by 5%-8%.
Chips and upstream industries break the situation.
Although China's GPU chip industry started late and local companies are facing competitive challenges in this field, with the promotion of policy support and market demand, domestic companies will increase investment in R&D to enhance their competitiveness.
The upstream chip and hardware market has high added value, but due to the lack of large-scale GPU chip companies with international competitiveness, industrial chain integration and technological breakthroughs will be the key development direction.
Strategic layout of regional coordinated development.
Under the national strategy of "Eastern Data and Western Computing", AI computing resources in different regions of China will be more rationally distributed and optimally allocated, promoting the overall coordinated development of regions.
A new data center plan is released.
High-performance GPU computing power data centers will become mainstream solutions, especially in Suzhou and other regions, driven by the best support and market demand, GPU data centers will provide powerful intelligent computing services for all walks of life.
Multi-party application scenarios are in full bloom.
The downstream application of AI computing power will have the highest penetration rate in the Internet field, and at the same time, the fields of unmanned driving, smart office, Internet of Things (IoT), blockchain, and AR VR will also show strong growth momentum.
In summary, the computing power market in 2024 will be a market full of opportunities and challenges. The world, especially China's computing power market, will continue to maintain a trend of rapid development, focusing on artificial intelligence, big data processing, edge computing, data center technology upgrading and other dimensions, and the upstream and downstream industry chains will benefit from this wave and jointly promote the progress of the entire technology industry. In this fast-moving market, seizing opportunities and innovating will become the key to success.
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