Google’s $100B Market Loss, caused by its Chatbot Error and Event Disappointments Outpaced by Microsoft’s AI-Powered Bing. Alphabet Inc (GOOGL.O) saw a significant loss of more than $100 billion in market value in a single day, which is three times the worth of its ChatGPT rival.
On Wednesday, Alphabet Inc (GOOGL.O) experienced a significant loss in market value as shares dipped by 9% during regular trading. The decline in market value was due to the new chatbot, Bard, which shared inaccurate information in a promotional video and a lackluster company event. The event failed to impress analysts, feeding concerns that Google is losing ground to rival Microsoft Corp.
Alphabet Inc’s Shares Tumble After AI Chatbot Mishap
Alphabet Inc (GOOGL.O) saw a steep decline in its market value after the new chatbot shared incorrect information during a promotional video and the company event failed to live up to expectations. The Google parent’s shares dropped by 9% during the regular trading hours and were flat after hours.
Google becomes second company to lose over $100 billion, with India’s Adani Group being the first.
Live-Streamed Presentation Falls Short
The live-streamed presentation on Wednesday by Google failed to include crucial details about the integration of its new AI chatbot, Bard, into the core search function. The following day, Microsoft held an event showcasing its Bing search engine integrated with ChatGPT functions.
Just before the presentation, Google discovered that Bard had given out incorrect information in a company advertisement. The AI chatbot’s error resulted in Alphabet’s shares declining by 7.4%, losing the equivalent of $140 billion in market value.
Muted Response from Analysts
Analysts were underwhelmed by Google’s launch event for Bard, meant to be the company’s answer to Microsoft’s ChatGPT. The event came just a day after Microsoft revealed its plans to integrate its rival AI chatbot into its Bing search engine and other products, posing a major challenge to Google.
Microsoft’s AI-Powered Bing
Microsoft has released a limited preview of its AI-boosted Bing search engine, powered by OpenAI technology, which is the same technology behind ChatGPT. Microsoft is joining a list of companies, including Google and Baidu, that are embracing chatbots to provide more human-like responses to search queries.
Joining the Waiting List
If you are interested in trying out the limited preview of the revamped Bing search engine, you will need to join the waiting list. Microsoft is eyeing a larger share of the $570 billion digital advertising market, with $18 billion in ad revenue through search and LinkedIn in 2022.
Microsoft Wants a Larger Slice of the Pie
Despite Google controlling 93% of the marketplace compared to Bing’s 3%, Microsoft wants a larger slice of the digital advertising market. Microsoft has outfitted Bing with generative AI powered by a more advanced version of OpenAI’s ChatGPT chatbot, providing users with more practical and human-like search results.
Google in 2023 and beyond
Here is a summary of my analysis of Google’s Business, from its Annual Statement.
Company Profile Alphabet, the parent company of Google, is known for its unconventional approach to business. Under the leadership of CEO Sundar Pichai, Alphabet continues to take on big challenges and invest in long-term projects, such as Artificial Intelligence (AI). Alphabet’s structure allows for each of its businesses, including Google Services and Google Cloud, to thrive through the guidance of strong leaders and independence.
Access and Technology for All: Google’s mission to make the world’s information accessible and useful remains a top priority. Over the years, the company has evolved from a search engine to a source for getting things done. Google is committed to building a more helpful Google for everyone, with products such as Search, YouTube, Google Assistant, and Google Cloud aimed at increasing knowledge, health, happiness, and success. The company has invested over $100 billion in research and development in the past five years to support these efforts.
Moonshots: Alphabet is not content with making incremental changes and is always looking to the future. The company is known for taking high-risk, high-reward projects, such as the acquisition of YouTube and the launch of Chrome, which have become major platforms in their respective fields. Alphabet will continue to pursue these types of projects as they are key to its long-term success.
The Power of AI: Alphabet recognizes AI as a foundational technology that will greatly benefit people and society. As a leading information and computer science company, Alphabet continues to advance the field of AI through research and development. AI already powers many of Google’s core products and services, including search, advertising, and cloud solutions. The company views AI as crucial to fulfilling its mission and delivering breakthrough innovations to assist people and benefit society.
Leave a Reply