The success of modern AI techniques relies on computation on a scale unimaginable even a few years ago. What exactly are the AI chips powering the development and deployment of AI at scale and why are they essential? Saif M. Khan and Alexander Mann explain how these chips work, why they have proliferated, and why they matter. Their report also surveys trends in the semiconductor industry and chip design that are shaping the evolution of AI chips.| Center for Security and Emerging Technology