US Artificial Intelligence (AI) Infrastructure Market Size to Attain USD 160.62 Billion by 2034

The US artificial intelligence (AI) infrastructure market size was evaluated at USD 20.67 billion in 2024 and is expected to grow around USD 160.62 billion by 2034, registering a CAGR of 22.75% from 2025 to 2034.

Highlights of the U.S. Artificial Intelligence (AI) Infrastructure Market

• By technology insight, the machine learning segment held a dominant presence in the market in 2024.
• By technology insight, the deep learning segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By end-user insight, the enterprises segment accounted for a considerable share of the market in 2024.
• By end user insight, the government organizations segment is projected to experience the highest growth rate in the market between 2025 and 2034.
• By offering insight, the hardware segment maintained a leading position in the market in 2024.
• By offering insight, the AI software segment is projected to expand rapidly in the market in the coming years.

Industry Valuation and Growth Rate Projection

The AI infrastructure market comprises the hardware, software, and services used to develop, deploy, and manage AI applications on a large scale. The emerging discipline requires high-performance computing systems, specialized processors, scalable storage, data management tools, and several development frameworks. Alongside increased AI adoption in healthcare, finance, retail, manufacturing, and automotive industries, there is a rising demand for stronger infrastructure. GPUs, from one side, are essential for AI acceleration. On the other hand, there are processors that have been specially built to accelerate the whole process. TensorFlow, PyTorch, and MXNet form the largest group of frameworks. Then follows in the line Cloud providers offer infrastructure for AI, as a Service-AWS, Microsoft's Azure, et cetera, while edge AI is still emerging, being pushed by real-time inference and privacy improvements.

What are the Market Trends in the US Artificial Intelligence (AI) Infrastructure Market?

The market trends in the U.S. artificial intelligence (AI) infrastructure market are defined by the Promotion of Generative AI, Cloud-Native AI Infrastructure, and Integrated Hardware-Software Approach.

• HPC Demand: Increasing usage of huge AI models like LLMs and generative AI.
• Promotion of Generative AI: Rapid proliferation of generative AI is driving hardware and software innovations in computing.
• Cloud-Native AI Infrastructure: Cloud platforms are working towards making AI capabilities more accessible, scalable, and cost-efficient in an IaaS model.
• Integrated Hardware-Software Approach: Growing demand for an end-to-end AI ecosystem.

What are the Major Market Restraints in the US Artificial Intelligence (AI) Infrastructure Market?

The growth of the U.S. artificial intelligence (AI) infrastructure market is restrained by factors such as legacy system compatibility, cost of AI infrastructure, and data availability and quality

• Legacy IT Infrastructure: Conventional enterprises operate on antiquated systems that do not support modern AI workloads.
• High Capital and Operation Cost: The capital expenses are the acquisition of specialized AI hardware, software licenses, and skills.
• Data: It is still a challenge to access large volumes of clean, relevant, and regulatory-compliant data.
• Talent Shortage: There is a critical shortage of experts in AI infrastructure in the industry.

What are the Market Opportunities in the US Artificial Intelligence (AI) Infrastructure Market?

The opportunities in the U.S. artificial intelligence (AI) infrastructure market are associated with hardware specialization, AI-optimized storage solutions, and AI software and services

• Customized AI Hardware Development: There is an increasing demand for chips and processors customized for AI/ML execution.
• AI-Optimized Storage & Interconnects: The increasing size of AI models is boosting the demand for high-speed scalable storage, and networking solutions.
• Growth of AI-Based Cloud Service: Establishing AI infrastructure on cloud platforms comes with scalable and flexible alternatives.
• Growth of AI-Based Software Solutions: Software providers have tremendous scope to innovate in the AI stack.

Recent Developments in the US Artificial Intelligence (AI) Infrastructure Market:

• In June 2025, Cisco and NVIDIA are enhancing security through AI-focused innovations, modernizing data centres, and accelerating enterprise AI adoption, thereby enhancing network operations and performance.
• In June 2025, Zilliz launched the Milvus Ambassador Program, a global initiative to recognize and support passionate AI infrastructure and vector databases enthusiasts, fostering knowledge sharing and innovation.

U.S. Artificial Intelligence (AI) Infrastructure Market Share, By Software, 2024 (%)

• AI Frameworks and Libraries – Holds 12%, providing foundational tools for model building, not dominating due to limited scope compared to full development platforms.
• Machine Learning Platforms – Leads with 31%, enabling large-scale model training and automation, dominating due to enterprise adoption and end-to-end capabilities.
• Data Management and Processing – Captures 28%, supporting data integration and handling pipelines, gaining strong momentum as data volumes surge.
• AI Development and Deployment Tools – Represents 29%, enabling scalable implementation and operationalization, growing strongly with demand for production-grade AI deployment.

U.S. Artificial Intelligence (AI) Infrastructure Market Share, By Hardware, 2024 (%)

• Servers – Holds 18%, powering compute-intensive AI workloads, gaining momentum with increasing model complexity.
• Semiconductors – Accounts for 14%, providing AI-optimized processing chips, not dominating due to supply chain constraints and high cost.
• Storage – Represents 11%, supporting large-scale data retention, not dominating due to slower growth relative to compute demand.
• Compute & Storage – Holds 12%, hybrid systems for intensive AI processing, steady share driven by integrated performance needs.
• Networking Equipment – Captures 8%, enabling data transfer infrastructure, not dominating due to lower investment priority compared to compute.
• Power & Cooling – Holds 6%, maintaining data center sustainability, not dominating due to indirect value contribution.
• Silicon Photonics – Accounts for 3%, enabling high-speed optical processing, emerging technology with limited commercial maturity.
• Data Centers – Represents 16%, critical infrastructure for AI workloads, gaining traction with accelerated cloud and hyperscale deployments.
• Hyperscale Infrastructure – Holds 12%, designed for scalable compute clusters, gaining momentum as generative AI expands capacity requirements.

U.S. Artificial Intelligence (AI) Infrastructure Market Share, By Service, 2024 (%)

• Consulting Services – Holds 20%, guiding AI deployment strategies, steady growth driven by need for expert implementation support.
• Managed Services – Leads with 44%, operating outsourced AI systems end-to-end, dominating due to demand for cost efficiency and subscription models.
• Training and Support – Represents 9%, delivering skill development and troubleshooting, not dominating due to limited revenue scope.
• OSAT (Outsourced Semiconductor Assembly & Testing) – Holds 27%, supporting backend chip production, gaining momentum with semiconductor manufacturing scale-up.

U.S. Artificial Intelligence (AI) Infrastructure Market Share, By Deployment, 2024 (%)

• On-premises Deployment – Holds 34%, preferred for data-sensitive workloads, not dominating due to higher infrastructure costs.
• Cloud Services – Commands 66%, delivering scalable AI computing and storage, dominating due to flexibility, reduced cost, and rapid adoption.

U.S. Artificial Intelligence (AI) Infrastructure Market Share, By Applications, 2024 (%)

• Healthcare – Holds 11%, focused on diagnostics and precision medicine, not dominating due to regulatory hurdles.
• Retail – Captures 8%, supporting personalization and logistics optimization, not dominating due to slower adoption curve.
• Finance – Represents 18%, enabling fraud detection and algorithmic trading, gaining strong traction from ROI-driven use cases.
• Manufacturing – Holds 16%, leveraging automation and predictive maintenance, strong uptake due to Industry 4.0 transformation.
• Transportation – Accounts for 7%, powering autonomous mobility and routing, not dominating due to early-stage commercialization.
• IT – Represents 13%, supporting infrastructure automation and cloud AI, gaining consistent growth as digitalization accelerates.
• Others – Leads with 27%, covering education, agriculture, entertainment, and government applications, dominating due to wide use-case diversity and rapid expansion.

US Artificial Intelligence (AI) Infrastructure Market Companies:

• NVIDIA Corporation
• Amazon Web Services (AWS)
• Microsoft Corporation
• Google Cloud (Alphabet Inc.)
• Intel Corporation
• IBM Corporation
• Oracle Corporation
• Samsung Electronics
• Micron Technology
• CoreWeave
• Equinix
• Cerebras Systems
• VAST Data
• Meta Platforms
• OpenAI

US Artificial Intelligence (AI) Infrastructure Market Segmentation:

By Software

• AI Frameworks and Libraries
• Machine Learning Platforms
• Data Management and Processing
• AI Development and Deployment Tools

By Hardware

• Servers
  
  • CPU Servers
  • GPU Servers
  • TPU Servers
• Semiconductors
  
  • AI Accelerators (ASICs, FPGAs)
  • Memory Chips (DRAM, NAND)
  • Processors (x86, ARM-based)
  • Semiconductor Capital Equipment
    
    • WFE (Wafer Fabrication Equipment)
      
      • Deposition Equipment
      • Etching Equipment
      • Lithography Equipment
      • Cleaning Equipment
      • Process Control
      • Implantation Equipment
    • ATE (Automated Test Equipment)
      
      • Wafer Testing Equipment
      • Package Testing Equipment
      • Final Testing Equipment
• Storage
  
  • SSD
  • HDD
  • NAS (Network-Attached Storage)
  • SAN (Storage Area Network)
• Compute & Storage
  
  • High-Performance Compute (HPC) Systems
  • Distributed Storage Solutions
• Networking Equipment
  
  • Routers
  • Switches
  • Network Interface Cards (NICs)
  • High-Speed Interconnects
• Power & Cooling
  
  • Uninterruptible Power Supplies (UPS)
  • Cooling Systems (Liquid, Air)
  • CDUs (Coolant Distribution Units)
• Silicon Photonics
  
  • Optical Transceivers
  • Photonic Integrated Circuits (PICs)
• Data Centers
  
  • On-premise Data Centers
  • Colocation Data Centers
  • Cloud Data Centers
• Hyperscale Infrastructure
  
  • Hyperscale Data Center Investments
  • Edge Computing Infrastructure

By Service

• Consulting Services
  
  • Strategy and Planning
  • Implementation and Integration
• Managed Services
  
  • Cloud AI Services
  • On-premises AI Support
• Training and Support
  
  • AI Model Training
  • Technical Support and Maintenance
• OSAT (Outsourced Semiconductor Assembly and Test)
  
  • Assembly Services
  • Testing Services

By Deployment

• On-premises Deployment
• Cloud Services
  
  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

By Applications

• Healthcare
• Retail
• Finance
• Manufacturing
• Transportation
• IT
• Others