The big story of 2023 has been the surging demand for artificial intelligence (AI). Just about every business is looking at ways to implement AI in their operations, while several big tech companies are pushing the boundaries of what AI can do.

But a challenge lies ahead for many companies pushing the forefront of AI development. It's increasingly expensive to build and train large language models. Not only do these AI models require a large number of very expensive chips, but the amount of energy these processes consume is staggering. One study found, for example, a simple ChatGPT prompt required 10 times the electricity as a standard Google Search. When multiplied by billions of uses, that has a huge impact on costs: both monetary and environmental.

And power demands are only getting bigger. "Reducing power consumption is becoming more important as AI power demand could easily triple in two years," Taiwan Semiconductor Manufacturing (NYSE: TSM) CEO C. C. Wei said at a recent conference. As such, in order for AI developers to keep pushing us forward, they need more efficient chips. And TSMC is likely the company that will bring that next big advancement to the market.

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Source Fool.com