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 is an experimental conversational AI service, powered by LaMDA. Built using our large language models and drawing on information from the web, it’s a launchpad for curiosity and can help simplify complex topics → https://t.co/fSp531xKy3 pic.twitter.com/JecHXVmt8l— Google (@Google) February 6, 2023
In the advertisement, BARD is given the prompt:
"What new discoveries from the James Webb Space Telescope (JWST) can I tell my 9-year old about?"
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.
This is inaccurate.
The first pictures of exoplanets were taken by the European Southern Observatory’s Very Large Telescope (VLT) in 2004, as confirmed by NASA.
Speaking as someone who imaged an exoplanet 14 years before JWST was launched, it feels like you should find a better example?— Bruce Macintosh (@bmac_astro) February 8, 2023
This is the first image of an exoplanet, taken with the Very Large Telescope of @ESO, 17 years before JWST was launched. You might want to refine your model (or use another example) pic.twitter.com/8VLnw52Y6n— Leonardo Blanco (@ElLeo_Blanco) February 8, 2023
The falsehood will raise further questions about the accuracy of search engines and of AI-generated answers to humans’ questions.
GOOGL shares have plunged over 6% after this headline hit...
Fears have been raised about inaccuracies generated by artificial intelligence systems which are not easily spotted by humans.
It seems the AI is more A than I for now...