Google shares are part of the parent company Alphabet
The stock fell more than 7 percent on Wednesday following the company hosted an event to showcase its chatbot that is artificially intelligent named Bard just one day after rival Microsoft hosted their own party to showcase its latest AI technologies that it uses in its own Bing. Bing.
Google officially declared Bard this morning, and confirmed CNBC’s earlier reports and the company also said it would begin to roll out the technology over the coming weeks.
In the course of the Wednesday event that was livestreamed in Paris, Google executives discussed some of the features of Bard. The presentation highlighted how Bard could be used to show the advantages and disadvantages of purchasing an electric car for instance or planning an excursion in Northern California.
Bard operates on the company’s massive language model LaMDA, which stands for the Language Model to Dialogue Applications. Google will make available the technology for conversation to “trusted users” before making it available to the general public as it was announced in its post to the blog on Monday.
The event also showcased AI enhancements to a variety related Google products, like Maps along with Google Lens, which lets users search for images on the camera of their phones.
The shares of Alphabet dropped at the time of the event, indicating the investors were expecting more growth in the face of increasing competition from Microsoft.
Google’s Google event was held one day following Microsoft
Microsoft hosted their exclusive AI event at the headquarters of Redmond, Washington. Microsoft’s event was focused on the latest AI-powered upgrades on the Bing search engine as well as its Edge browser. Bing isn’t a close second to Google in terms of search and browsing, now lets users have more conversations with answers to queries.
These Microsoft update to its products were based on ChatGPT’s technology. OpenAI and OpenAI, for which Microsoft has invested billions of dollars.
ChatGPT is an AI software that can generate text using complicated written questions. The tool was a hit on the internet when it was launched at the end of November. This prompted analysts as well as Google employees to wonder if the company was behind in AI this area, that has been a primary priority for Google for a number of years. As a result of ChatGPT’s success, Google declared an internal “code red” to speed up the development of Bard and other AI products. The co-founders of the company, Larry Page and Sergey Brin were reportedly involved in the project again, several some time after having stepped away from their day-to-day duties at the company.
While Microsoft’s most recent AI investments will increase stress on Google search results, certain analysts predict it could take a while for Microsoft to realize any notable improvements.
“Search enhancements will serve as an incentive to increase revenue from advertising in the over the long-termhowever it will take some time for users to return to Bing and they’ll need the help of a crowbar in order to remove advertising of Google,” Jefferies’ analyst Brent Thill wrote in a Tuesday note. “We consider these changes to be just the tip of the iceberg in the MSFT’s AI capabilities, and offer the greatest potential in applications for enterprises.”
Analysts from Evercore stated that there was “little additional information” of Google’s announcement that could be a factor in the decline in price of the stock. They said that they believed that this was an early and “perhaps unintentionally” glimpse of Google’s AI Google is working on for a long time.
Yet, the analysts believe that the Google’s AI software is “at at least at least as good” as the competition.
“Leveraging its many years in AI investment (which resulted in a near double in CapEx for 2018) and unprecedented size, this could assist the company to defend its position on the market over the long term,” they wrote in an email note on Wednesday.