Alphabet Stock Loses $100 Billion After New AI Chatbot Gives Wrong Answer In Ad

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Alphabet shares tumbled on Wednesday after reports of misinformation in promotional materials for Google parent’s new artificial intelligence chatbot — adding to concerns that rival Microsoft could push into the search-engine market with a new AI-powered offering. Can also extend its legs.

important facts

Google shares fell nearly 7% to $99.40 as of 11 a.m. Wednesday—a drop of more than $100 billion in market value, including a nearly 5% gain on Tuesday as the tech giant competed with popular ChatGPT announced an AI-equipped service bot called Bard to do the same.

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Stock decline worsens after Reuters informed of A Twitter ad Wednesday morning for the service, which generates answers to user questions and is rolling out to a limited group of testers ahead of a wider release, included incorrect information.

in twitter PostA GIF image displays a user asking Bard, “What new discoveries from the James Webb Space Telescope (JWST) can I tell my 9-year-old about?” Photos of a planet outside our own solar system.

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NASA despite chatbot claim in advertisement reports The first picture of a planet outside the Milky Way was taken by the Very Large Telescope in 2004 – nearly 19 years before NASA’s Webb telescope.

“This highlights the importance of a rigorous testing process, which we are launching this week,” a Google spokesperson said in an email. forbesIn keeping with the testing process to ensure that Bard’s responses “meet a high bar for quality, security and groundedness in real-world information.”

Adding to potential concerns, Microsoft announced on Tuesday that it would launch a new version of its search engine, Bing, using the same technology that underlies ChatGPT to help inform user search queries — a move similar to Wedbush. Analyst Dan Ives said that “Webush Markets should challenge” to grab market share. ,

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Artificial intelligence technology has made a big splash from investors this year amid the growing popularity of ChatGPT, which launched in November and helped its creator, OpenAI, garner a staggering $29 billion valuation. Alphabet’s bard announcement came a day before Microsoft held a press conference to invest in OpenAI, which has sent shares of the Silicon Valley staple up nearly 20% over the past month. “This is just the first step on the AI ​​front,” Ives said in a note to clients after the event, reiterating an outperform rating for the shares.


Despite the apparent volatility, Bank of America analysts have said they are bullish on Google’s AI strategy, writing in a note to clients that Google is “well prepared with years of investment” to capture a significant portion of the market. in technology to capture share, especially since its search engine has a huge distribution advantage compared to Microsoft’s. Still, analysts caution that security issues are key risks, including result inaccuracy or bias, disinformation and the potential use of models for harm.

important quotes

Announcing the new chatbot this week, Alphabet CEO Sundar Pichai said, “AI is the most profound technology we’re working on today.”

‘AI first’ to last: how Google got left behind in the AI ​​boom (Forbes)

Bill Gates on advising OpenAI, Microsoft, and why AI is ‘the hottest topic of 2023’ (Forbes)

ChatGPT’s breakout moment and inside the race to harness AI (Forbes)

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