Elementary, Mr. Watson: High Power: When Physics Becomes Real
The Shaughnessy Report: Watt About Power Integrity?
Global PCB Connections: Understanding Your Fabricator’s Capabilities (or Niche)
AI Server Growth in 2025 Faces Uncertainties, DeepSeek Effect to Boost AI Inference Share
February 13, 2025 | TrendForceEstimated reading time: 1 minute
TrendForce’s latest investigations reveal that global AI server shipments grew by 46% in 2024, driven by strong demand from CSPs and OEMs. However, multiple factors, including US chip restrictions, the DeepSeek effect, and supply chain readiness for GB200/GB300 racks, could impact AI server shipments in 2025. TrendForce has outlined the following three scenarios based on these uncertainties.
The base case—considered the most probable—factors in Microsoft, Meta, Amazon, and Google’s recent announcements of increased capital expenditures in cloud and AI infrastructure, with expected annual growth exceeding 30%. This investment is expected to sustain momentum for AI server demand.
Currently, the supply chain outlook for shipments of AI servers remains stable. Under this scenario, global shipments of AI servers in 2025 are projected to grow by nearly 28% year-over-year. However, if GB200/GB300 rack shipments face scaling challenges, CSPs may prioritize HGX, MGX, or their own ASIC-based infrastructure instead.
The worst case scenario, with the second-highest probability, estimates the growth of AI server shipments to slow to 20-25% based on three key factors: First, stricter US regulations on AI chip exports to China create greater market uncertainty. Second, delayed shipments of NVIDIA GB racks as their complex design pushes large-scale deployment to the second half of 2025. The GB300, set for release around the same time, features higher specifications, which could extend testing and validation timelines for server rack systems. Lastly, the DeepSeek effect, which may lead customers to reduce dependence on high-end AI solutions.
The most optimistic scenario (bullish case) assumes proactive AI policies from both the US and China, such as the US’ Stargate Initiative, which could accelerate AI server deployment.
While DeepSeek may impact high-end GPU adoption, US-based CSPs are procuring proprietary ASIC AI servers faster than expected. Additionally, DeepSeek is expected to expand AI applications, driving edge AI server growth. Based on these factors, AI server shipments could increase by nearly 35% in 2025.
TrendForce highlights that DeepSeek’s influence will drive CSPs toward lower-cost proprietary ASIC solutions, shifting focus from AI training to AI inference. This shift is expected to gradually increase the share of AI inference servers to nearly 50%.
While GPUs will remain essential for developing AI models, the market will become more segmented. CSPs focusing on large-scale AI algorithms will continue investing in high-performance solutions, while cost-sensitive enterprises at the edge will prioritize more economical alternatives.
Share on:
Testimonial
"Our marketing partnership with I-Connect007 is already delivering. Just a day after our press release went live, we received a direct inquiry about our updated products!"
Rachael Temple - AlltematedSuggested Items
Episode 6 of Ultra HDI Podcast Series Explores Copper-filled Microvias in Advanced PCB Design and Fabrication
10/15/2025 | I-Connect007I-Connect007 has released Episode 6 of its acclaimed On the Line with... American Standard Circuits: Ultra High Density Interconnect (UHDI) podcast series. In this episode, “Copper Filling of Vias,” host Nolan Johnson once again welcomes John Johnson, Director of Quality and Advanced Technology at American Standard Circuits, for a deep dive into the pros and cons of copper plating microvias—from both the fabricator’s and designer’s perspectives.
American Standard Circuits Achieves Successful AS9100 Recertification
10/14/2025 | American Standard CircuitsAmerican Standard Circuits (ASC), a leading manufacturer of advanced printed circuit boards, proudly announces the successful completion of its AS9100 recertification audit. This milestone reaffirms ASC’s ongoing commitment to the highest levels of quality, reliability, and process control required to serve aerospace, defense, space, and other mission-critical industries.
Imec Launches 300mm GaN Program to Develop Advanced Power Devices and Reduce Manufacturing Costs
10/13/2025 | ImecImec, a world-leading research and innovation hub in nanoelectronics and digital technologies, welcomes AIXTRON, GlobalFoundries, KLA Corporation, Synopsys, and Veeco as first partners in its 300mm gallium-nitride (GaN) open innovation program track for low- and high-voltage power electronics applications.
Renesas Powers 800 Volt Direct Current AI Data Center Architecture with Next-Generation Power Semiconductors
10/13/2025 | RenesasRenesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, announced that it is supporting efficient power conversion and distribution for the 800 Volt Direct Current power architecture announced by NVIDIA, helping fuel the next wave of smarter, faster AI infrastructure.
SEMI Reports Global 300mm Fab Equipment Spending Expected to Total $374 Billion Over Next Three Years
10/09/2025 | SEMIGlobal 300mm fab equipment spending is expected to reach $374 billion from 2026 to 2028, SEMI reported today in its latest 300mm Fab Outlook.