Google Bard AI Error Triggers $160 Billion Alphabet Stock Plunge
A glaring factual error from Google's new Bard AI chatbot spooks investors, wiping out $160 billion in Alphabet's market value as fears grow over the search giant's ability to compete with Microsoft-backed ChatGPT.
Google faces a major setback after its new Bard AI chatbot makes a highly publicized factual error during its debut. The mistake, which Google shares widely in press outreach and on social media, raises immediate concerns about the reliability of the tech giant's artificial intelligence technology.
The blunder spooks investors who worry that Google cannot keep pace with rival ChatGPT, a product backed by Microsoft. This panic triggers a massive selloff that wipes out $160 billion from the market value of Google's parent company, Alphabet, with the stock dropping 7% on Wednesday and an additional 4% on Thursday.
Despite this staggering financial loss, Alphabet remains the fourth most valuable company in the world with a market capitalization of $1.2 trillion. The incident highlights the high stakes of the current AI arms race as Microsoft actively deploys similar technology to challenge Google's long-dominant search engine.