Portland News

Google shares dropped after presentation gone wrong

Google Since ChatGPT unveiled OpenAI in late 2022, it left other tech companies in the dust, and the race for AI technology had also accelerated.

Particularly Google is falling behind and has been making efforts to catch up.

The business staged a demonstration of Bard, an AI chatbot, with disastrous results on Wednesday.

As a result, Alphabet, the parent company of Google, experienced a decrease in share price of more than 7% at the end of trading.

The news

Microsoft debuted cutting-edge AI technology on its Bing search engine on Tuesday.

Due to the success of the event, Google decided to try and emulate it.

The AI technology will be made accessible over the next few weeks, according to a statement published by Google earlier that day, which also verified the news of its Bard announcement.

The presentation

On Wednesday at the occasion, Google officials enthused about Bard’s potential.

The advantages and disadvantages of AI were covered in a presentation.

Bard is powered by LaMDA (Language Model for Dialogue Applications), the company’s well-known language model.

Prior to being made more generally available, chat technology will be made available to “trusted testers,” according to a blog post published by Google on Monday.

The firm showcased updates to other products during the event, including Maps and Google Lens.

Alphabet shares declined despite its demonstration because investors had high hopes given Microsoft’s rising competition.

AI update

An AI conference was held on Tuesday at Microsoft’s Redmond, Washington, headquarters.

The purpose of the event was to present AI-powered updates to Microsoft’s Edge and Bing browsers.

In terms of search engine utilization, Bing has traditionally lagged behind Google, but advances in AI might narrow the gap with conversational answers to queries.

Microsoft made significant financial investments in ChatGPT’s OpenAI technology, which formed the basis for improvements made to its products.

Read also: AI becomes central focus in Google in 2023


The artificial intelligence program that is causing a stir online is called ChatGPT.

It produced viral material after its November release in compliance with the directives.

However, some experts and Google staff are beginning to wonder if the leading search engine is lagging behind in AI.

The business has also long been emphasizing AI.

Google implemented an internal “code red” after ChatGPT’s spectacular rise to fame in an effort to speed the development of Bard and other products.

Additionally, Google co-founders Larry Page and Sergey Brin opted to assume leadership of the firm after spending years away from day-to-day administration.

Microsoft gains

Microsoft’s latest AI efforts have put Google under further strain, although many people think it will be some time before Microsoft realizes any real benefits.

In a note published on Tuesday, Jeffries analyst Brent Thill stated the following:

“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.”

Evercore analysts claim that the information offered at the Google event would have advanced the business.

Stock drop

The company’s stock price may have dropped as a result of the lack of an increase.

The episode, according to analysts, was a hasty and probably early display of the artificial intelligence that Google has been working on for years.

Despite these restrictions, many people think Google’s AI technology is powerful enough to compete on its own.

Analysts published a report on Wednesday that stated:

“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.”

Image source: Search Engine Journal

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