Google parent Alphabet’s shares fell nearly 8% on Wednesday, wiping out $100 billion in market value after its new artificial intelligence chatbot shared incorrect information in a promotional video.
The stock price has plummeted amid fears that Alphabet Inc. will lose ground to rival Microsoft Corp in the search-engine market, which is Alphabet’s primary source of revenue. On February 7, Google launched the AI-enabled chatbot Bard. Alphabet stock has dropped 30% in the last year, and 15% in the last six months. Despite reporting disappointing earnings in the fourth quarter ended December as advertisers cut spending amid recession concerns, the stock recovered nearly 13% in a month. As part of a cost-cutting measure, the company recently laid off approximately 12,000 workers, one of the largest headcount reductions in the last year.