A recent analysis by The Next Platform reveals that while AI server deals boost total revenues, they diminish profitability per dollar earned. Notably, the gross margins for AI servers are around 5%, in contrast to traditional servers, which typically yield margins three times. The server market has grown steeply during Q2 2024 due to the strong demand for AI servers, increasing 35% YoY. Dell, Supermicro, HPE are the big 3. But ODM direct sales dominate as Microsoft, Amazon, Google and Meta continue to custom order their own servers. Counterpoint Research has published. The global AI server market size was estimated at USD 131. 65 billion in 2025 and is projected to reach USD 598.