Arun Moral, Managing Director, Primus Partners, highlights the rising significance of inferencing in AI. While AI training predominantly takes place in data centers, inferencing is moving closer to users through edge devices like smartphones, autonomous vehicles, and IoT systems. As generative AI relies heavily on data, the training phase faces limitations. Beyond 5 trillion data points, synthetic data will dominate, reducing the scope for further training. This shift underscores inferencing as the primary growth driver for AI hardware in the future.