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Beyond GPUs: Do You Need Specialized Hardware to Ride the AI Wave?

Nitish Agarwal
6 min readJan 22, 2025

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Photo by Petr Magera on Unsplash

The AI revolution isn’t coming, it’s here. From chatbots answering customer queries to algorithms powering drug discovery, artificial intelligence is rapidly transforming industries. As businesses rush to leverage this transformative technology, a critical question is emerging: Do you need specialized hardware to truly unlock AI’s potential, or can general-purpose systems — or the cloud — suffice?

Gartner’s latest forecast paints a clear picture: the world is investing heavily in AI. Global IT spending is projected to jump by nearly 10% in 2025 to a staggering $5.61 trillion, with a significant chunk driven by generative AI hardware upgrades. AI-optimized servers are expected to double the spending on traditional servers, reaching a massive $202 billion in 2025 alone.

India, a burgeoning tech hub, is mirroring this trend, with data center system spending set to surge by over 19%.

This explosion in spending raises the stakes. Is specialized AI hardware just hype, or is it a necessary investment for businesses aiming to stay competitive? Let’s dive into what specialized AI hardware is, the benefits it offers, and help you determine if it’s the right path for your organization.

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