Business Maverick: Alphabet’s $100 Billion Stock Swoon Shows AI Stakes Are Rising

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Google parent Alphabet’s shares tumbled 7.7% on Wednesday after concerns surfaced about the competency of Bard, the ChatGPT rival it unveiled on Feb. 6.

The fervor in the stock market bubbling around artificial intelligence spread this week to Microsoft Corp. and Alphabet Inc., which despite investing heavily in the technology had so far been ignored by traders in favor of smaller, more speculative companies.surfaced about the competency of Bard, the ChatGPT rival it unveiled on Feb. 6. The rout was the worst for the stock in more than three months and erased more than $100 billion in market value.

Until this week, the speculation surrounding artificial intelligence in the US had been mostly limited to Nvidia Corp., which dominates the market for chips used for complex computing required for artificial intelligence programs, along with more obscure software makers with AI in their names. C3.ai Inc., for example, has more than doubled this year. Microsoft and Alphabet, meanwhile, are lagging behind the Nasdaq 100 Index with gains of less than 13% each.

Chinese tech companies like Baidu Inc., Alibaba Group Holding Ltd. and NetEase Inc. have also announced plans to expand AI capabilities,

 

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