The Artificial Intelligence (AI) Chips Market, predicted by Technavio to grow by USD 389.25 billion at a CAGR of 68.13% from 2023 to 2028, is driven by the increasing integration of AI chips in data centers, smartphones, and autonomous vehicle systems. AI chips are critical for enabling machines to process large datasets, making intelligent decisions, and learning from previous experiences. They are central to AI applications in fields like robotics and real-time data analysis. This surge in adoption stems from the industry's pursuit of replicating human cognitive functions in algorithms, allowing for rapid advancements and unprecedented demand in the market.

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