“Generative AI applications usher in a new era in the age of AI, standing out for the sheer number of parameters that they have to deal with,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “Several large AI applications currently handle trillions of parameters, with this count increasing tenfold annually…

“The server and storage system component market is poised for an 11 percent growth for full-year 2023, primarily propelled by accelerators. Excluding accelerators, a 27 percent decline in revenue is forecasted, attributed to reduced demand resulting from inventory adjustments by system vendors and hyperscale cloud service providers,” stated Baron Fung, Senior Research Director at Dell’Oro Group.

“Worldwide data center capex is projected for only a 4 percent growth in 2023. The slowdown in general-purpose server and storage deployments weighed down the market despite increased AI-related investments,” said Baron Fung, Sr. Research Director at Dell’Oro Group.