Going All In

Tech companies raced ahead with AI, driving markets and stirring regulators

- ANDREW R. CHOW

IN 2024, BOTH CUTTING-EDGE TECHNOLOGY and the companies controlling it grew increasingly powerful, provoking euphoric wonderment and existential dread. Companies like Nvidia and Alphabet soared in value, fueled by expectations that artificial intelligence (AI) will become a cornerstone of modern life. While those grand visions are still far into the future, tech undeniably shaped markets, warfare, elections, climate, and daily life this year.

Perhaps technology's biggest impact this year was on the global economy. The so-called Magnificent Seven—the stocks of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—thrived in large part because of the AI boom, propelling the S&P 500 to new highs. Nvidia, which designs the computer chips powering many AI systems, led the way, with its stock nearly tripling in price. These profits spurred an arms race in AI infrastructure, with companies constructing enormous factories and data centers—which in turn drew criticism from environmentalists about their energy consumption. Some market watchers also expressed concern about the increasing dependence of the global economy on a handful of companies, and the potential impacts if they prove unable to fulfill their massive promises. But as of early December, the value of these companies showed no sign of letting up.

Though not with the explosive novelty of ChatGPT's 2023 breakthrough, generative AI systems advanced over the past 12 months: Google's DeepMind achieved silver-medal results at a prestigious math competition; Google's NotebookLM impressed users with its ability to turn written notes into succinct podcasts; ChatGPT passed a Stanford-administered Turing test; Apple integrated new artificial intelligence tools into its newest iPhone. Beyond personal devices, AI played a pivotal role in forecasting hurricanes and powering growing fleets of driverless cars across China and San Francisco.