Google Loses $100 Billion in Value After AI Chatbot Flubs Fact
A factual error in a Google AI promotional video triggers a massive $100 billion drop in Alphabet's market value. The costly mistake highlights the high stakes of the current tech race against Microsoft.
Google experiences a massive $100 billion drop in market value after its new AI chatbot, Bard, makes a factual error in a promotional video. Social media users easily spot the mistake about an exoplanet and point out that the company could have verified the claim simply by using its own search engine.
The embarrassing flub occurs just hours before Google executives host a launch event in Paris to tout Bard as the future of the company. As a result of the blunder, Alphabet shares slide significantly, contrasting sharply with a 3% rise in stock for Microsoft, Google's primary rival in the artificial intelligence space.
CEO Sundar Pichai states that Bard remains available exclusively to trusted testers before a public release in the coming weeks. Despite this cautious approach, the financial damage unfolds over several days, with Alphabet stock ultimately dropping roughly 11.5% over a three-day period as investors react to the rushed and botched announcement.