The article notes broader industry context, including DeepSeek, Huawei, and Nvidia’s ongoing market prominence.

A shake-out is expected, with the number of survivors projected to fall from about 121 to roughly 25 by decade’s end due to consolidation and ROI concerns.

The United States leads with at least 59 AI chip companies, while China has 14 and most other countries have only a handful.

There is growing sentiment that the massive AI development bets are yielding slim returns for customers, setting the stage for consolidation.

The piece frames an AI chip “gold rush” with a flood of entrants, looming consolidation, and geopolitics shaping national policy.

Overall, there are well over 100 firms pursuing AI processors, with JPR counting 121 players currently in discussion.

California and Texas anchor the US scene, with California alone hosting 42 AI chip firms.

In the UK, CST suggests positioning Britain as a world leader in AI chip design over the next decade despite market dynamics.

Startup funding for these firms totals more than $13.5 billion, with many rounds of $100 million or more in the past year.