Silicon’s mid-life crisis
AI has evolved from classical ML to deep learning to generative AI. The most recent chapter, which took AI mainstream, hinges on two phases—training and inference—that are data and energy-intensive in terms of computation, data movement, and cooling. At the same time, Moore’s Law, which determines that the number of transistors on a chip doubles every two years, is reaching a physical and economic plateau.
For the last 40 years, silicon chips and digital technology have nudged each other forward—every step ahead in processing capability frees the imagination of innovators to envision new products, which require yet more power to run. That is happening at light speed in the AI age.
As models become more readily available, deployment at scale puts the spotlight on inference and the application of trained models for everyday use cases. This transition requires the appropriate hardware to handle inference tasks efficiently. Central processing units (CPUs) have managed general computing tasks for decades, but the broad adoption of ML introduced computational demands that stretched the capabilities of traditional CPUs. This has led to the adoption of graphics processing units (GPUs) and other accelerator chips for training complex neural networks, due to their parallel execution capabilities and high memory bandwidth that allow large-scale mathematical operations to be processed efficiently.
But CPUs are already the most widely deployed and can be companions to processors like GPUs and tensor processing units (TPUs). AI developers are also hesitant to adapt software to fit specialized or bespoke hardware, and they favor the consistency and ubiquity of CPUs. Chip designers are unlocking performance gains through optimized software tooling, adding novel processing features and data types specifically to serve ML workloads, integrating specialized units and accelerators, and advancing silicon chip innovations, including custom silicon. AI itself is a helpful aid for chip design, creating a positive feedback loop in which AI helps optimize the chips that it needs to run. These enhancements and strong software support mean modern CPUs are a good choice to handle a range of inference tasks.
Beyond silicon-based processors, disruptive technologies are emerging to address growing AI compute and data demands. The unicorn start-up Lightmatter, for instance, introduced photonic computing solutions that use light for data transmission to generate significant improvements in speed and energy efficiency. Quantum computing represents another promising area in AI hardware. While still years or even decades away, the integration of quantum computing with AI could further transform fields like drug discovery and genomics.
Understanding models and paradigms
The developments in ML theories and network architectures have significantly enhanced the efficiency and capabilities of AI models. Today, the industry is moving from monolithic models to agent-based systems characterized by smaller, specialized models that work together to complete tasks more efficiently at the edge—on devices like smartphones or modern vehicles. This allows them to extract increased performance gains, like faster model response times, from the same or even less compute.
Researchers have developed techniques, including few-shot learning, to train AI models using smaller datasets and fewer training iterations. AI systems can learn new tasks from a limited number of examples to reduce dependency on large datasets and lower energy demands. Optimization techniques like quantization, which lower the memory requirements by selectively reducing precision, are helping reduce model sizes without sacrificing performance.
New system architectures, like retrieval-augmented generation (RAG), have streamlined data access during both training and inference to reduce computational costs and overhead. The DeepSeek R1, an open source LLM, is a compelling example of how more output can be extracted using the same hardware. By applying reinforcement learning techniques in novel ways, R1 has achieved advanced reasoning capabilities while using far fewer computational resources in some contexts.
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