Google’s stock tumbles after its Bard AI ad shows inaccurate response

Alphabet (GOOGL) collapsed Wednesday after Google’s parent company released a new ad for its AI chatbot Bard that offered an incorrect answer. Google’s stock has fallen sharply after the advertising windfall.


Google posted a video on Twitter demonstrating the “experimental conversational AI service powered by LaMDA,” the company wrote. LaMDA is Google’s language model for dialogue applications, which applies machine learning to chatbots and allows them to engage in “free-flowing” conversations, the company says.

In the commercial, Bard is asked the question: “What new discoveries from the James Webb Space Telescope can I tell my 9-year-old about?”

Bard quickly rattles off two correct answers. But his final answer was inaccurate. Bard wrote that the telescope took the very first images of a planet outside our solar system. In fact, the first images of these “exoplanets” were taken by the European Southern Observatory’s Very Large Telescope, according to NASA data.

ChatGPT is just the dawn of an era of AI-powered content

Google chatbot contest

Google shares dropped 8% Wednesday after the post. In the meantime, Microsoft (MSFT) increased marginally.

Microsoft is a major stakeholder in AI competitor OpenAI, which runs the ChatGPT chatbot that has gone viral in recent weeks. Also, on January 23, Microsoft announced a multi-billion dollar investment in OpenAI. The tech giant has declined to disclose a specific amount at the moment.

But the company this week unveiled a new version of its Bing search engine, which has fallen behind Google, a dominant player in that market. Microsoft plans to power Bing with the same AI technology used by ChatGPT.

Also, Baidu (BIDU) fell 4% on Wednesday after jumping to an 11-month high on Tuesday as the China-based rival announced plans for its own AI-powered chatbot.

The Chinese e-commerce giant Alibaba (BABA) said Wednesday that it is working on its own AI-powered chatbot. BABA shares are up by a fraction.

You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison


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