{"id":82191,"date":"2025-10-16T13:02:10","date_gmt":"2025-10-16T13:02:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/82191\/"},"modified":"2025-10-16T13:02:10","modified_gmt":"2025-10-16T13:02:10","slug":"ai-optimized-iaas-set-to-drive-146-growth-in-end-user-spending-by-2025","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/82191\/","title":{"rendered":"AI-optimized IaaS set to drive 146% growth in end-user spending by 2025"},"content":{"rendered":"<p>AI-optimized infrastructure as a service (IaaS) is emerging as the next disruptive growth engine for AI infrastructure. As a result, end-user spending is projected to grow 146% by the end of 2025, according to Gartner, Inc. a business and technology insights company.    \t\t<\/p>\n<p>The AI-optimized IaaS market includes spending on high-performance computing (HPC) resources\u2014such as graphics processing units (GPUs), application-specific integrated circuits (ASICs), and other AI accelerators\u2014designed for large-scale AI processing.    \t\t\t&#13;<\/p>\n<p>\u201cTraditional IaaS is maturing, however, AI-optimized IaaS spending growth projections are higher than that of traditional IaaS over the next five years,\u201d said Hardeep Singh, Principal Analyst at Gartner. \u201cAs organizations expand their use of AI and GenAI, they will need specialized infrastructure such as GPUs, tensor processing units (TPUs) or other AI ASICs, high-speed networking and optimized storage for fast parallel processing and data movement. As such, traditional central processing unit (CPU)-based IaaS will face significant challenges in meeting these demands.\u201d    \t\t\t&#13;<\/p>\n<p>Gartner estimates worldwide end-user spending on AI-optimized IaaS will total $18.3 billion by the end of 2025 and $37.5 billion in 2026.    \t\t\t&#13;<\/p>\n<p>Worldwide spending and annual growth rate of AI-optimized IaaS, 2024-2029    \t\t\t&#13;<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/10\/picture-iocs-london-release.png\" alt=\"[Image Alt Text for SEO]\"\/>    \t\t\t&#13;<\/p>\n<p>As AI adoption scales across industries, inferencing workloads will become a dominant force driving demand for AI-optimized IaaS. Gartner projects end-user spending on inferencing to take over that of training-intensive workloads in 2026. Spending on inference-focused applications is expected to reach $20.6 billion, up from $9.2 billion in 2025. In 2026, 55% of AI-optimized IaaS spending will support inference workloads and it is projected to reach more than 65% in 2029.    \t\t\t&#13;<\/p>\n<p>\u201cUnlike training which involves intensive, large-scale compute cycles that occur during model development and ongoing updates, inference happens continuously \u2014 powering real-time applications such as chatbots, recommendation engines, fraud detection systems and industry-specific applications,\u201d said Singh. Gartner    \t\t\t&#13;<\/p>\n<p>    \t\t\t&#13;<br \/>\n&#13;<br \/>\n &#13;<br \/>\n&#13;\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"AI-optimized infrastructure as a service (IaaS) is emerging as the next disruptive growth engine for AI infrastructure. As&hellip;\n","protected":false},"author":2,"featured_media":82192,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[371,111,139,69,145],"class_list":{"0":"post-82191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-computing","9":"tag-new-zealand","10":"tag-newzealand","11":"tag-nz","12":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/82191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=82191"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/82191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/82192"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=82191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=82191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=82191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}