Nvidia held 98% of AI GPU market share in 2023, shipping approximately 3.76 million data-center GPUs.

NVIDIA has had a mega-successful 12+ months riding the AI wave, with data center GPU shipments hitting 3.76 million units according to semiconductor analyst firm TechInsights. This represents over 1 million more units than 2022, when NVIDIA shipped 2.64 million data center GPUs.

NVIDIA has achieved an absolutely dominant 98% market share in AI GPU shipments for 2023, with 3.76 million AI chips shipped. When AMD and Intel AI processor shipments are added together, the total number only reaches 3.85 million units. This means that AMD and Intel shipped only 710,000 AI accelerators combined, compared to the 3.76 million shipped by NVIDIA alone.

NVIDIA has captured 98% market share of AI GPU revenue, generating $36.2 billion — that's 3x the revenue of 2022, which stood at $10.9 billion. However, AI processor alternatives are emerging from Google with its TPUs, AMD with its Instinct AI accelerators, Intel's Gaudi AI accelerators, and CPUs that feature NPUs for AI workloads.

TechInsights analyst James Sanders observed: "I suspect that because of the growth of AI, it is a little bit inevitable that it will have to diversify from. There's also a lot of action outside of GPUs, especially with Google's TPUs, given the capacity and price issues attached to NVIDIA's GPUs. Google's custom silicon efforts generate more revenue than custom silicon efforts from AWS and merchant silicon vendors like AMD and Ampere."

Sanders further noted that "Google wound up in a position where they're technically the third largest data center silicon provider [by revenue] because of just kind of a weird confluence of market forces. Argos, the video encoder that they made for YouTube, think about all of the video that YouTube has to ingest on an hourly basis. For every Argos video encoder ASIC they've been able to deploy, they displaced 10 Xeon CPUs in the process. From a power consumption standpoint, that is a massive change." He added: "Their total revenue for that isn't going to be super high even with high volumes. They want to keep a pretty consistent 10% to 20% discount compared to an Intel or AMD-powered instance. The cloud platforms won't get completely away from Intel, AMD, or NVIDIA because there's always going to be customer demand for chips from those companies in these clouds."