Enthusiasm is still building around the nascent MPEG-4 AVC market, but the use of advanced video decoders does not mean that MPEG-2-only decoders will disappear from the market soon, reports In-Stat. In fact, MPEG-2 unit shipments are expected to experience growth until 2009, though declining ASPs for MPEG-2 solutions will cause revenues to decline, the high-tech market research firm says. "Buzz is really all there is to MPEG-4 AVC currently," says Michelle Abraham, In-Stat analyst. "We expect the market will be small in 2005, as many decoder IC suppliers have been conducting interoperability testing with encoder suppliers. We expect widespread availability of MPEG-4 AVC decoder ICs beginning in 2006." The worldwide MPEG Video IC market revenues for 2004 were US$ 3.8 billion. MPEG-4 Video ICs will appear in more and more mobile handsets as mobile video delivery systems based on standards like DVB-H and DMB are deployed around the world. In the MPEG-2 consumer encoder IC market, NEC Electronics had the top unit share in 2004 for the second year in a row, mainly due to its design wins in DVD recorders. STMicroelectronics had the highest MPEG Video IC revenue again in 2004, for the fifth straight year.
Enterprise AI budgets are flowing in two directions at once, and only one of them builds an asset the buyer actually controls. Gartner's latest forecast puts worldwide AI spending at $2.7 trillion in 2026, but the composition of that figure matters far more than the total. Executives who read only the headline will miss the tension between what they are buying and what they actually own. The Number Behind the Number Gartner projects 2026 AI spending is a 49.5 percent increase over 2025, with $3.6 trillion forecast for 2027. AI infrastructure accounts for $1.5 trillion of this year's total, more than half. Gartner's John-David Lovelock calls the data center buildout the largest infrastructure project humanity has undertaken, and describes demand as inelastic even as memory prices climb. Compute Concentration is a Sovereignty Issue Gartner expects hyperscalers and service providers buying AI-optimized servers to remain the largest single area of spending. For an enterprise, t...