Alphabet stock loses $100 billion after new AI chatbot gives wrong answer
Concerns that competitor Microsoft may strengthen its position in the search engine industry with a buzzy new AI-equipped service increased after news that advertising material for the Google parent company's new artificial intelligence chatbot featured false information.
FollowAlphabet Inc's market worth decreased by $100 billion on Wednesday as a result of its new chatbot providing false information in a promotional video and a disappointing trade show, fueling concerns that the Microsoft Corp. competitor is gaining distance on Alphabet Inc.
During regular trading, Alphabet shares fell as much as 9%, with volumes nearly double the 50-day moving average. After hours, they reduced their losses and were nearly flat. With Wednesday's losses excluded, the stock has gained 15% since the start of this year after losing 40% of its value last year.
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Google has been on its heels after OpenAI, a startup Microsoft is backing with around $10 billion, introduced software in November that has wowed consumers and become a fixation in Silicon Valley circles for its surprisingly accurate and well-written answers to simple prompts.
Google did not get into specifics regarding how and when it will incorporate Bard into its primary search function during its live-streamed presentation.
Also Read |Â Google unveils AI chatbox Bard, will take on ChatGPT
Microsoft said at an event the previous day that a ChatGPT-integrated version of their Bing search had already been made available to the public. Just before the presentation, Mountain View, California-based Google found Bard's inaccuracy. On Wednesday, Microsoft stock increased by almost 3%; in after-hours trade, it remained unchanged.
Alphabet posted a short GIF video of Bard in action via Twitter, promising it would help simplify complex topics, but it instead delivered an inaccurate answer. The search and advertising behemoth is allegedly bringing in founders Sergey Brin and Larry Page to speed up its efforts in order to stay up with OpenAI and competitors.
Also Read |Â Microsoft revamps Bing search engine, Edge browser with ChatGPT built in
