What is the expected volume for CXL buffer in earnest to start in 2023 and 2024 
w, when there's a market share change between the two, we continue to grow. And that's also true for the next generation of memories. We engaged with the two main vendors there. We also engaged with, I would say, nascent vendors who are starting to develop their own processors for data centers.
And that will create some additional opportunity down the road, not this year or next year, but the year after. So we try to engage with everyone developing chips for data centers, whether it's the traditional AMD or Intel or the people developing their own chips, especially the cloud guys.
John Pitzer -- Credit Suisse -- Analyst
And then, Luc, as my follow-up, you've talked about kind of the long design cycles as we go from DDR4 to DDR5 and your optimism around kind of your ability to continue to grow share through that transition. I'm curious, is it too early on the CXL side to talk about what the design funnel looks like and kind of what your position is in that design funnel?
Luc Seraphin -- Chief Executive Officer
It's a bit early to say where we are in the design funnel. What I would say is we think the industry first has converged mostly to the CXL interface. The architecture of the chips for sector interfaces are being defined as we speak. And we are thankful to those discussions with memory vendors, processor vendors, and the cloud guys.
I think we are in the phase of defining chip architectures and memory subsystem architecture. And we're taking a good part or a central part to those discussions. Then we will go into a phase of development and market ramp, as I said, you know, the volume for CXL buffer in earnest will start sometime in 2023 and 2024. But the things that have changed since last time we've talked is that the industry has aligned around CXL interfaces.
The architectures are being defined, and we are part of those discussions with the industry. The other thing that is happening for Rambus, and I think we're uniquely positioned for that is that a lot of the IP contained is CXL buffer, IP that we have developed as part of our IT business. CXL interface is actually 32-gig PHY and a controller. We have part -- we have this as part of our offering in our IT core business.
The CXL buffers will require security functions. We have this as part of our IT business. So from an IP content standpoint, that goes into these chips. I think we're uniquely positioned to be successful in that space.
John Pitzer -- Credit Suisse -- Analyst
Perfect, thank you.
Operator
[Operator instructions] Your next question comes from the line of Mark Lipacis with Jefferies. Your line is open. You may ask your question.
Mark Lipacis -- Jefferies -- Analyst
Hi, thanks for taking my questions. A couple of questions. Luc, you -- in the past, you've successfully used inventory strategically to meet upside. And today, you had mentioned again that, you know, you often have -- or you have like some strategic inventory placed in the supply chain.
Can you -- if I look at your balance sheet, it looks like your inventories are kind of flattish year on year, but you're expecting more revenues this year. So where is the strategic inventory? Is it on other -- is there other places in the supply chain not showing up on your balance sheet where you have access to it? If you could help explaining like how you're positioned right now with the ability to meet upside should it manifest?
Rahul Mathur -- Chief Financial Officer
Hey, Mark, it's Rahul. Thanks, and it's a great question. What I'll tell you is that inventory report is at a point in time at the end of the quarter. And so clearly, over the -- some part of the quarter, it will go up a little bit higher and sometimes it will go a little lower.
We do have some inventory that's placed with some distributors, and that helps us solve the inventory or request from partners on a quick basis. And so that's not going to show up in our balance sheet. But hopefully, that's a little bit of additional color.
Mark Lipacis -- Jefferies -- Analyst
That's helpful. Thank you. And then a follow-up, if I may. Can you talk 
w, when there's a market share change between the two, we continue to grow. And that's also true for the next generation of memories. We engaged with the two main vendors there. We also engaged with, I would say, nascent vendors who are starting to develop their own processors for data centers.
And that will create some additional opportunity down the road, not this year or next year, but the year after. So we try to engage with everyone developing chips for data centers, whether it's the traditional AMD or Intel or the people developing their own chips, especially the cloud guys.
John Pitzer -- Credit Suisse -- Analyst
And then, Luc, as my follow-up, you've talked about kind of the long design cycles as we go from DDR4 to DDR5 and your optimism around kind of your ability to continue to grow share through that transition. I'm curious, is it too early on the CXL side to talk about what the design funnel looks like and kind of what your position is in that design funnel?
Luc Seraphin -- Chief Executive Officer
It's a bit early to say where we are in the design funnel. What I would say is we think the industry first has converged mostly to the CXL interface. The architecture of the chips for sector interfaces are being defined as we speak. And we are thankful to those discussions with memory vendors, processor vendors, and the cloud guys.
I think we are in the phase of defining chip architectures and memory subsystem architecture. And we're taking a good part or a central part to those discussions. Then we will go into a phase of development and market ramp, as I said, you know, the volume for CXL buffer in earnest will start sometime in 2023 and 2024. But the things that have changed since last time we've talked is that the industry has aligned around CXL interfaces.
The architectures are being defined, and we are part of those discussions with the industry. The other thing that is happening for Rambus, and I think we're uniquely positioned for that is that a lot of the IP contained is CXL buffer, IP that we have developed as part of our IT business. CXL interface is actually 32-gig PHY and a controller. We have part -- we have this as part of our offering in our IT core business.
 The CXL buffers will require security functions. We have this as part of our IT business. So from an IP content standpoint, that goes into these chips. I think we're uniquely positioned to be successful in that space.
John Pitzer -- Credit Suisse -- Analyst
Perfect, thank you.
Operator
[Operator instructions] Your next question comes from the line of Mark Lipacis with Jefferies. Your line is open. You may ask your question.
Mark Lipacis -- Jefferies -- Analyst
Hi, thanks for taking my questions. A couple of questions. Luc, you -- in the past, you've successfully used inventory strategically to meet upside. And today, you had mentioned again that, you know, you often have -- or you have like some strategic inventory placed in the supply chain.
Can you -- if I look at your balance sheet, it looks like your inventories are kind of flattish year on year, but you're expecting more revenues this year. So where is the strategic inventory? Is it on other -- is there other places in the supply chain not showing up on your balance sheet where you have access to it? If you could help explaining like how you're positioned right now with the ability to meet upside should it manifest?
Rahul Mathur -- Chief Financial Officer
Hey, Mark, it's Rahul. Thanks, and it's a great question. What I'll tell you is that inventory report is at a point in time at the end of the quarter. And so clearly, over the -- some part of the quarter, it will go up a little bit higher and sometimes it will go a little lower.
We do have some inventory that's placed with some distributors, and that helps us solve the inventory or request from partners on a quick basis. And so that's not going to show up in our balance sheet. But hopefully, that's a little bit of additional color.
Mark Lipacis -- Jefferies -- Analyst
That's helpful. Thank you. And then a follow-up, if I may. Can you talk 