Despite AI Blunders, Alphabet's Financials Show Growth and Potential for Investors
Google falls short, disappointing investors
Large language models like ChatGPT could revolutionize the way people access information on the internet, so its release was seen by many as an existential threat to Google's core business, Search. The announcement GIF was supposed to show how Bard could "help simplify complex topics," but instead showed Bard providing an inaccurate answer.
- Bard suggested that the James Webb Space Telescope was used to take the first pictures of planets outside our solar system. It did not.
- Investors were spooked. Shares of Alphabet dropped as much as 9% the day after the GIF went live and the inaccuracy was discovered, trading at nearly three times the 50-day moving average volume.
- Behind the scenes, calls were mounting from within the company to delay Bard's release.
- Despite this, Google released Bard to the public in March 2023.
Alphabet's stock slipped nearly 5% in the two days following the suspension.
Earlier this year, Google rebranded the project, calling it Gemini and promising a new and improved experience. Soon after its launch, however, the company had to suspend image generation on the platform. Gemini produced albeit inclusive content but with historical "inaccuracies," like images of female or African-American Popes.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.