💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

Google loses $100B as AI chatbot disappoints investors

Published 2023-02-08, 03:06 p/m
© Reuters.  Google loses $100B as AI chatbot disappoints investors
MSFT
-
GOOGL
-
GOOG
-
MSFT34
-

Proactive Investors - Shares of Google’s parent company Alphabet (NASDAQ:GOOGL) Inc (NASDAQ:GOOG) fell almost 8% on Wednesday, crashing its valuation by about $100 billion, after a demonstration of its latest artificial intelligence (AI) features failed to impress investors.

Following the recent viral success of AI chatbot ChatGPT, launched by private company OpenAI, tech titans Google and Microsoft (NASDAQ:MSFT) have been racing to integrate new AI features into their respective offerings.

On Tuesday, Microsoft unveiled new AI-powered updates to its Bing search engine and Edge browser. Microsoft’s updated products utilize technology from OpenAI, in which Microsoft is a multi-billion-dollar investor.

Just days after Google announced it would be releasing its own chatbot Bard AI, the company today unveiled a slew of new AI-powered features for its Search, Maps, and Lens apps during a live-streamed event promoting its AI bot.

An advertisement shared online by Google demonstrating how Bard works, however, showed the chatbot return a factually incorrect response.

When asked: “What new discoveries from the James Webb Space Telescope can I tell my 9-year-old about?” Bard offered three bullet points in return, including one that stated that the telescope “took the very first pictures of a planet outside of our own solar system.”

But the first image of an exoplanet was taken in 2004, as confirmed by NASA, almost two decades before the James Webb Space Telescope was even launched in 2021.

Alphabet's shares slid following the event, indicating the market had expected more from Google as its AI rivalry with Microsoft heats up.

Alphabet’s shares had fallen 7.6%, trading at about US$99.85 on Wednesday afternoon.

Read more on Proactive Investors CA

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.