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AI-driven surge reshapes the storage landscape, redefining data consumption in 2024
As we step into 2024, the synergy between Artificial Intelligence (AI) and storage media is poised to redefine the technological landscape. In a surprising turn of events, the dip in revenue and sales for HDD and NAND-based storage media witnessed in 2023 is set to reverse, driven by the insatiable appetite of AI for data and computational power.
Hard disc drives (HDDs) and NAND-based storage media had a decline in income and sales the year before, which was mostly caused by economic uncertainty and overspending during the early stages of the COVID-19 epidemic. Nonetheless, industry observers predict a stunning reversal in 2024, driven by the unquenchable need for AI-powered storage solutions.
Strong storage infrastructure is becoming more and more necessary as AI moves from the experimental stage to widespread use. A portion of the 2023 recession was caused by the budget's transition to AI services. The capital costs that would have ordinarily spurred storage innovation were subtracted by the generative AI projects' exponential development. Experts anticipate that as AI develops into a stage where it is ready for manufacturing, there will be a rise in demand for storage hardware will experience a renaissance.
The need for storage driven by AI is complex. Storage becomes critical as companies move from testing with AI to incorporating it into their fundamental business processes. Significant storage capacity is needed for research data and large language models (LLMs), which are crucial parts of sophisticated AI systems. As a result, manufacturers of storage media are preparing to satisfy this growing need with cutting-edge solutions made to specifically address the needs of AI workloads.
AI's effect on hard drives is very significant. Hard drives continue to be essential even in the face of obstacles like changes in consumer behavior brought about by large cloud providers and economic downturns. Hard drives are still used to store up to 90% of commercial data, demonstrating their continued importance. Technological advancements such as Seagate's SkyHawk AI 24 TB HDD demonstrate the industry's dedication to offering affordable, high-capacity solutions that can satisfy the requirements of AI-driven applications.
NAND-based storage, facing a decline in demand in 2023, is poised for a resurgence. Cloud companies, major consumers of NAND flash, are anticipated to resume purchases, contributing to the revival of the semiconductor industry. Forecasts indicate revenue growth in Q4 2023, with an expected 49.6% YoY growth in 2024, signaling a positive trajectory for NAND-based storage solutions.