Alphabet Loses Over $110 Billion Market Cap After AI ChatBot ‘Glitch’

Update (1125ET): Google owner Alphabet  has continued crashing after an underwhelming launch even raised concerns that its new artificial intelligence chatbot Bard may yield inaccurate responses. 

Google was forced to respond after the shares collapsed, saying in a statement that Bard’s response “highlights the importance of a rigorous testing process.”

The company said it will combine external feedback with its own internal testing to ensure Bard’s responses “meet a high bar for quality, safety and groundedness in real-world information.” 

Today’s drop has wiped over $110 billion off of Alphabet’s market cap…

It’s second largest daily market cap decline ever.

As a reminder, Alphabet CEO Sundar Pichai said as he announced the new chatbot this week that “AI is the most profound technology we are working on today.”

“The general sentiment is that ChatGPT and the Microsoft Bing announcement have created a narrative that Google’s search business model is under threat,” said Mark Riedl, a professor at the Georgia Institute of Technology.

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As we detailed earlier, while every company is rapidly changing its name to XXXX.AI in order to garner some ‘fad’ multiple expansion, Alphabet shares are showing the downside of some of that over-exuberance.

Reuters reports that Google published an online advertisement in which its much anticipated AI chatbot BARD delivered inaccurate answers.

The tech giant posted a short GIF video of BARD in action via Twitter, describing the chatbot as a “launchpad for curiosity” that would help simplify complex topics.

Here’s the ad…

BARD responds with a number of answers, including one suggesting the JWST was used to take the very first pictures of a planet outside the Earth’s solar system, or exoplanets.