Led by Nvidia, U.S. Dominates in Generative AI Technology

In the realm of generative artificial intelligence (AI), the United States has emerged as the dominant force, with American tech giants seizing a substantial piece of the market pie. Led by Nvidia, these companies hold a commanding market share, ranging from 70% to a staggering 90% across various segments of the generative AI landscape.

The rise of generative AI gained significant momentum with the launch of ChatGPT in 2022, sparking a wave of innovation and growth in the industry. According to Statista, the global generative AI market is projected to expand by approximately 20% annually, reaching a valuation of $207 billion by 2030.

Within the U.S., the generative AI sector has witnessed remarkable growth, surpassing $16.1 billion in revenue last year, which is three times larger than its closest competitor, China. By 2030, the U.S. market is anticipated to exceed $65 billion, accounting for a third of the global market share, highlighting the formidable position of American players in the field.

Generative AI technology can be categorized into four levels, including consumer-facing applications, foundational technology like large language models, cloud infrastructure supporting services, and semiconductors crucial for development and operations. Notably, Nvidia commands a dominant 92% market share in data center GPUs, solidifying its position as a key player in the market.

Nvidia's success is not solely attributed to its cutting-edge semiconductor performance but also to its software prowess. The widely adopted CUDA development platform, introduced in 2006, has become a cornerstone for AI development, boasting a user base of over 4 million developers.

Moreover, American companies exhibit a stronghold in crucial areas such as large language models and other technologies essential for generative AI. OpenAI, in collaboration with Microsoft, has established a formidable presence in this domain, while tech giants like Amazon and Google actively engage in advancing generative AI technology.

The U.S. generative AI ecosystem is further bolstered by major players like Meta, which has made substantial investments in infrastructure, including a sizable order of 350,000 H100 GPU graphics cards from Nvidia. With more than 80% market share in key segments, U.S. tech companies continue to lead the way in shaping the future of generative AI technology.