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08FEB2023replayed
one year on
productGoogle · Alphabet · Microsoft · OpenAI

Google AI chatbot Bard makes factual error in promotional demo, wiping $100 billion from Alphabet's market value

A tweet advertising Google's new Bard chatbot incorrectly claims the James Webb Space Telescope took the first pictures of an exoplanet, leading to a 7.7% stock drop on the day of Google's Paris AI event.

Google’s much-hyped new AI chatbot Bard, not yet released to the public, is already under fire for an inaccurate response in its own promotional material. In a tweet posted by Google this week, a user asks Bard what new discoveries from the James Webb Space Telescope to tell a nine-year-old. Bard responds with a bullet point claiming JWST ‘took the very first pictures of a planet outside of our own solar system.’

NASA data shows the first exoplanet image was actually captured by the European Southern Observatory’s Very Large Telescope in 2004, nearly two decades before JWST launched. The error was first reported by Reuters on Wednesday, sending Alphabet shares down 7.7% and erasing roughly $100 billion in market value. The drop deepened during Google’s Paris event, where executives detailed plans to integrate conversational AI into search but offered no immediate remedy for the Bard blunder.

The stumble is particularly damaging given the timing. One day earlier, Microsoft announced an upgraded Bing search engine powered by the same technology behind ChatGPT, in which it has invested billions. Analysts were quick to frame the week as a turning point: Google, long the undisputed search leader, now appears to be scrambling to catch up in the AI race. Wedbush’s Dan Ives said Microsoft’s move should ‘challenge the Web search market by grabbing market share.’ A Google spokesperson emphasized that Bard is still in a limited Trusted Tester phase and that external feedback will help improve accuracy. The incident underscores the importance of rigorous testing and limited Trusted Tester feedback to ensure high quality and safety.

D
Dan Ives

Wedbush analyst said Microsoft's announcement of a ChatGPT-powered Bing should challenge the web search market and grab market share.

B
Bank of America analysts

Bullish on Google's AI strategy, noting years of investment, but warned of safety issues like inaccuracy, bias, and disinformation.

S
Sundar Pichai

Alphabet CEO called AI 'the most profound technology we are working on today' when announcing Bard earlier this week.

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Google spokesperson

Stated that the error highlights the importance of rigorous testing and that feedback from the Trusted Tester program will be combined with internal testing to ensure high quality and safety.

One year later — open only if you can handle spoilers

In the months that followed, Google would struggle to regain investor confidence in its AI offerings, while Microsoft's Bing, despite early enthusiasm, failed to significantly dent Google's search market share. The event is now seen as a cautionary tale about the risks of rushing AI products to market, though Bard itself eventually launched and received mixed reviews.

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