Google’s advertisement for chatbot Bard was first pointed out by Reuters, and OpenAI, a startup Microsoft is backing, has introduced software that has become a fixation in Silicon Valley circles for its surprisingly accurate and well-written answers to simple prompts. This has caused investors to worry that Alphabet is losing its competitive edge.”}” data-sheets-formula=”=OpenAI(R[0]C[-1],R[0]C[-2])”>Alphabet Inc (GOOGL.O) lost $100 billion in market value on Wednesday after its new chatbot shared inaccurate information in a promotional video and a company event failed to impress. This caused worries that the Google parent is losing ground to rival Microsoft Corp (MSFT.O). The stock had lost 40% of its value last year but rallied 15% since the beginning of this year, excluding Wednesday’s losses.
The error in Google’s advertisement for chatbot Bard was first pointed out by Reuters, and OpenAI, a startup Microsoft is backing, has introduced software that has become a fixation in Silicon Valley circles for its surprisingly accurate and well-written answers to simple prompts. This has caused investors to worry that Alphabet is losing its competitive edge.
just before the presentation, causing embarrassment for the tech giant. Microsoft had already released a version of their Bing search with ChatGPT functions integrated, giving them a head start in the race to AI-powered search. Google scrambled to catch up, leading to the rushed announcement and the embarrassing mistake. Alphabet posted a GIF video of Bard in action, promising it would simplify complex topics, but instead delivered an inaccurate answer. Microsoft shares rose around 3% on Wednesday, while Alphabet’s stock remained flat.”}” data-sheets-formula=”=OpenAI(R[0]C[-1],R[0]C[-2])”>Google’s live-streamed presentation on Wednesday morning was intended to showcase their new AI-powered search tool, Bard. However, an error was discovered just before the presentation, causing embarrassment for the tech giant. Microsoft had already released a version of their Bing search with ChatGPT functions integrated, giving them a head start in the race to AI-powered search.
Google scrambled to catch up, leading to the rushed announcement and the embarrassing mistake. Alphabet posted a GIF video of Bard in action, promising it would simplify complex topics, but instead delivered an inaccurate answer. Microsoft shares rose around 3% on Wednesday, while Alphabet’s stock remained flat.
Alphabet, the parent company of Google, is launching a Trusted Tester program to ensure that its AI-powered assistant, Bard, provides accurate and safe responses. This comes after Bard incorrectly answered a prompt about the James Webb Space Telescope, suggesting it had taken the first pictures of exoplanets when it was actually the European Southern Observatory’s Very Large Telescope. Alphabet is hoping to keep up with OpenAI and other competitors in the AI space, and has brought in founders Sergey Brin and Larry Page to speed up its efforts. This comes after Alphabet reported a disappointing fourth quarter due to advertisers cutting spending.
Microsoft’s new ChatGPT software has injected excitement into the tech industry, as AI has become a fixation for tech executives. The appeal of AI-driven search is that it could provide results in plain language, making browsing faster and more efficient. However, there are risks associated with AI-driven search, such as inherent biases in the algorithms that can skew results, sexualize images, or even plagiarize.
Despite these risks, Microsoft’s new software has people questioning if it will be a formidable competitor against Google’s search capabilities. It remains unclear what impact this could have on targeted advertising, the backbone of search engines like Google.
