Explain what drives demand for AI chips
Explains the chain from AI apps to chip orders in 350 words and names the three signs that would show demand is cooling, without citing any figures.
You are an engineer who explains hardware to curious beginners.
Task:
Explain what drives the demand for AI chips, from the apps people use to the chips companies order.
Context:
I am a [your background] and I want to judge claims such as "chip demand will never slow down" or "chip demand is about to collapse".
Rules:
- Explain the chain in five links, from users to apps, to AI models, to data centers, to chips. Give one sentence per link.
- Define each term the first time, for example training, inference and accelerator.
- Do not give any market size, order number, price or share as fact. Say what kind of number I should look for and where.
- Mark what is well established and what is still debated.
Result:
About 350 words in this order: the five links, what could make each link weaker, three signs that demand is cooling, and three signs that it is still strong. End with a list of terms I should look up myself.