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Tech's AI Hangover Might Just Be Getting Started - The Wall Street Journal

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The technology behind generative AI like ChatGPT has exploded, fueling a demand for chips that can handle the processing power these programs need. WSJ visited Amazon’s chip lab to see how these chips work, and why tech titans think they are the future. Illustration: John McColgan

One thing already seems certain about 2024: AI is going to need to start showing the money. Whether it can is a whole other question.

Excitement for generative artificial intelligence sparked by OpenAI’s chatbot was the dominant theme for investors in 2023. The Nasdaq Composite jumped 43% for the year—its second-best annual performance in 15 years. Meanwhile, technology and e-commerce companies on the S&P 500 averaged a gain of 57%, more than double the broad index’s overall performance for the year. Indexes tracking subsectors such as chips and software recorded their best annual gains since 2009, when the market was bouncing back from the global financial crisis.  

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Tech's AI Hangover Might Just Be Getting Started - The Wall Street Journal
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