China's Generative AI Hardware Market Set for Explosive Growth

International Data Corporation (IDC) projects China's spending on generative AI-related network hardware will grow fivefold within five years, from 6.5 billion yuan in 2023 to 33 billion yuan by 2028. This 38.5% compound annual growth rate reflects the country's accelerating adoption of large language models and AI applications.

Token Consumption Reaching Trillions

The report highlights astonishing growth in daily Token consumption, expected to reach 114.2 trillion Tokens by late 2024 - excluding usage through overseas Machine Learning-as-a-Service (MaaS) platforms. National Data Administration figures show consumption grew 300-fold in just six months, from 10 billion Tokens daily in early 2024 to over 30 trillion by mid-year.

Image source note: The image was generated by AI, and the image licensing service provider is Midjourney.

Network Infrastructure Under Pressure

As data centers process exponentially more Tokens, network infrastructure faces unprecedented strain:

• Data traffic volumes are skyrocketing
• Communication energy consumption is rising sharply
• Network bottlenecks threaten to limit AI development progress

"The network has become the critical bottleneck constraining further AI advancement," states the IDC report. This challenge is driving massive investment in high-performance networking solutions.

High-End Ethernet Market Booms

The high-end network hardware market is responding with dramatic expansion:

• 200G+ Ethernet port shipments will surpass 6 million units in 2024
• Projected 45.6% CAGR through 2029
• Forecasted shipments exceeding 43 million ports by 2029

Key Points:

🌟 33B yuan - Projected generative AI hardware spending by 2028 (from 6.5B in 2023) 📈 114.2 trillion Tokens - Expected daily consumption in China by late 2024 🚀 43M ports - Forecasted high-end Ethernet shipments by 2029