The release of ChatGPT by OpenAI in late 2022 is widely seen as having generated massive public and corporate interest in the practical uses of AI.
With both houses of Congress under Democratic control, the party is now expected to challenge the president's technology agenda more vigorously.
Investors had flocked to companies producing computer chips and networking infrastructure, building data centres and providing the energy to power them, as well as developing the AI itself.
But investors want returns, and in recent months concerns have grown about whether the AI boom can produce the expected riches.
Lawmakers are also expected to introduce legislation that could curb the expansion of the AI industry.
Fears of tighter AI rules concerned investors, though worries about the industry's prospects had been growing for some time.
Concerns that tech firms had become overvalued were being expressed long before the elections.
Investors appeared to react to the results with fears that more regulation of artificial intelligence would follow.
U.S. technology stocks fell sharply over 24 hours after Democrats made sweeping gains in this week's midterm elections, giving the party full control of Congress.
The Tesla boss had spent nearly $450 million to back Republican campaigns in the midterms.