In last decade, machine learning, especially deep neural networks have played a critical role in the emergence of commercial AI applications. Deep neural networks were successfully implemented in early 2010s thanks to the increased computational capacity of modern computing hardware. AI hardware is a new generation of hardware custom built for machine learning applications.
As the artificial intelligence and its applications emerge, the race to develop cheaper and faster chips is likely to accelerate among tech giants. Companies can either rent these hardware on the cloud from cloud service providers like Amazon AWS or buy their hardware. Own hardware can result in lower costs if utilization can be kept high. If not, companies are better off relying on the cloud vendors.