September 23, 2026
Choosing AI chips has become riskier: JPR expects suppliers to exit by 2028
On September 22, JPR forecast a contraction in the AI chip market by 2028. Since 2012, the number of suppliers has grown by 267%, while investment has exceeded $31 billion. JPR expects the market to consolidate through acquisitions, quiet shutdowns, and companies shifting toward embedded systems.
JPR now believes compiler coverage and system integration will determine competition. For a team choosing hardware for a product, the performance figure is no longer the main filter.
A test of staying power. 67% of suppliers are targeting on-device model inference and IoT, where the field is already crowded. JPR advises buyers to require a written commitment from suppliers to support a chip for 5 years.
By 2028, it will be clear which suppliers survived the shakeout and maintained support for their platforms.
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