Google shares dropped from presentation
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Google – The race for AI technology has intensified since ChatGPT unveiled OpenAI in late 2022, leaving other tech firms in the dust.
Google in particular is lagging and has been working to catch up.
The company held an event on Wednesday to display Bard, an AI chatbot, to terrible consequences.
As a result, Alphabet, the parent company of Google, saw a decline of more than 7% in share price at the close of trade.
The news
On Tuesday, Microsoft showcased brand-new AI technologies on its Bing search engine.
Due to the event’s success, Google decided to emulate it.
Earlier that day, Google had confirmed the news of its Bard announcement and said that the AI technology will be made available over the coming weeks.
The presentation
Google executives spoke about Bard’s potential on Wednesday at the event.
In a presentation, the pros and cons of AI were discussed.
The company’s well-known language model, LaMDA (Language Model for Dialogue Applications), drives Bard.
Google said in a blog post on Monday that “trusted testers” will have access to chat technology before it is made more widely available.
Throughout the event, the company demonstrated upgrades to other products, such as Maps and Google Lens.
Despite its demonstration, Alphabet shares fell because investors had high expectations given Microsoft’s growing competitiveness.
AI update
On Tuesday, Microsoft’s Redmond, Washington, headquarters hosted an AI conference.
The event’s objective was to showcase AI-powered upgrades to Microsoft’s Bing and Edge browsers.
Bing has always trailed behind Google in terms of search engine usage, but advancements in AI may close the gap with conversational replies to inquiries.
Microsoft invested enormous sums in ChatGPT’s OpenAI technology, which served as the foundation for the advancements made to its products.
Read also: Google’s new focus is AI after ChatGPT pressure
ChatGPT
ChatGPT is the name of the artificial intelligence software that is making waves online.
After its November release, it generated viral content in accordance to the given instructions.
But some analysts and Google employees are starting to question if the top search engine is falling behind in AI.
The company has also been focusing on AI for a long time.
After ChatGPT’s meteoric ascent to stardom, Google instituted an internal “code red” in an effort to hasten the creation of Bard and other products.
Additionally, after years away from the day-to-day management of the company, Google co-founders Larry Page and Sergey Brin decided to take control.
Microsoft gains
Although Google has been under more pressure as a result of Microsoft’s recent AI developments, many believe it will still be some time before Microsoft sees tangible advantages.
Brent Thill, a Jeffries analyst, said the following in a note on Tuesday:
“Search improvements will act as a tailwind to [advertising revenue long term], but it will take time to bring users back to Bing, and they will need a crowbar to pry away advertisers from Google.”
“We view these updates as the tip of the iceberg for MSFT’s AI capabilities, with the largest opportunities in enterprise use cases.”
The news that was presented during the Google event, according to Evercore analysts, would have progressed the company.
Stock drop
The lack of an increase may have caused the company’s stock price to decline.
Analysts assert that they believe the incident was a hurried and likely early demonstration of the artificial intelligence that Google has been developing for years.
Many believe Google’s AI technology is strong enough to compete on its own despite these limitations.
On Wednesday, analysts released a report that said:
“Leveraging its years of AI investment (which drove a near doubling of CapEx in 2018) and unparalleled scale, this should help the company defend its market position in the long run.”
