As the demand for training and inference of large AI models grows, AI chips are evolving towards higher computing power and higher power consumption, making advanced cooling a critical component for unlocking computational performance.

Diamond, with advantages such as ultra-high thermal conductivity and a low coefficient of thermal expansion, is poised to become a key thermal management solution for high-end AI chips.

Currently, global companies are actively investing in diamond-based cooling technologies.

Overseas manufacturers hold a first-mover advantage in CVD diamond materials and system applications, while domestic enterprises, leveraging the synthetic diamond industrial chain, are accelerating their expansion into semiconductor-grade materials and thermal management applications.

Although challenges such as cost and process maturity currently persist, the increasing power consumption of AI chips is expected to accelerate the industrialization of diamond cooling, giving related materials, equipment, and application segments long-term growth potential.

Key Insights

Due to its exceptional thermal properties, diamond is emerging as a crucial material for next-generation, high-power AI chip heat dissipation.

As single-chip power consumption continues to break new records, traditional copper-based cooling solutions are increasingly challenged by rising heat flux density and localized hotspot control.

Diamond's room-temperature thermal conductivity can reach 2000-2200W/(m·K), and it possesses a low coefficient of thermal expansion that is highly compatible with semiconductor materials like silicon and silicon carbide, effectively reducing thermal stress.

Known technical pathways for diamond cooling include diamond heat spreaders, diamond/metal composites, and the integration of diamond with microchannel liquid cooling.

From a technical standpoint, diamond-copper composite materials can achieve a thermal conductivity of around 800W/m·K with relatively lower process costs, making it a currently faster-to-implement technical route.

Projected Commercialization Timeline

2026 is anticipated to mark the first year of scaled commercial adoption for diamond heat dissipation.

NVIDIA has explicitly stated that its next-generation Vera Rubin architecture GPUs will utilize a cooling system combining "diamond-copper composite lids with 45-degree Celsius direct liquid cooling" to effectively manage temperatures for high-power chips.

Intel's CEO, Patrick Gelsinger, has also noted an investment in a synthetic diamond wafer company, expressing optimism about diamond's potential as a thermal material in chip packaging.

In March 2026, diamond cooling technology pioneer Akash Systems announced the sale of diamond-cooled AI servers equipped with AMD Instinct MI350X GPUs.

Market Potential and Competitive Landscape

Should diamond cooling solutions achieve widespread application in high-end scenarios, the potential market space is promising.

As chips evolve towards higher computational density and liquid cooling and other thermal management solutions see accelerated adoption, diamond cooling is set to become a key technological direction for high-end AI chips.

Based on calculations using data from PwC Strategy&, the market size for diamond cooling could reach $5.35 billion by 2030.

Currently, numerous global companies are engaged in the R&D and commercial validation of diamond cooling technologies.

Chinese enterprises possess cost advantages but remain in a catch-up phase regarding high-end CVD technology, brand recognition, and customer qualification cycles.

Risks to Consider

Key risks include AI computing power demand falling short of expectations, market penetration rates being lower than anticipated, and slower-than-expected improvements in process maturity.