Broadcom Projects AI XPU Market Growth to $90 Billion by 2027

Dec 16, 2024

Broadcom anticipates that the serviceable market for AI XPU and networking could reach $60 billion to $90 billion by 2027, positioning the company as a market leader. The AI supercomputer landscape is expected to scale to millions of GPUs. Recently, Elon Musk announced plans to expand xAI's Colossus AI supercomputer from 100,000 to 1 million GPUs, drawing significant industry attention.

During Broadcom's Q4 2024 earnings call, CEO Hock Tan revealed that three major hyperscale clients are planning multi-generational AI XPU deployments, aiming for 1 million XPU clusters by 2027. Broadcom collaborates with tech giants like Google and Meta to develop AI and custom data center hardware chips, working closely with clients to define chip specifications.

Broadcom's high-performance XPUs are manufactured by TSMC. Analysts, however, note uncertainty in market size calculations, with NVIDIA's AI market revenue expected to hit $100 billion this year.

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