Alphabet, the parent company of Google, faced a substantial setback on Monday as its stock plummeted by approximately $90 billion, sparked by growing apprehensions surrounding the company’s generative artificial intelligence (AI) platform.
The controversy surrounding Google’s Gemini AI service has significantly impacted Alphabet’s stock performance on Wall Street. Alphabet’s stock (GOOGL) experienced a notable decline of 4.5%, closing at $138.75 on Monday, marking its lowest price since January 5 and representing the second-largest daily loss over the past year, according to initial reports by Forbes.
This downturn follows a series of issues related to Google’s Gemini AI service, including the generation of racially inaccurate images of historical figures and a chatbot’s failure to differentiate between the more negatively impactful historical figure among Adolf Hitler and Elon Musk.
In response to mounting concerns, Google admitted to having “missed the mark” in the initial rollout of Gemini and subsequently announced the temporary shutdown of its AI image service for the upcoming weeks.
Alphabet’s market value decline comes amidst relatively stable major stock indexes, making it the most significant percentage drop among S&P 500 constituents with a market capitalization exceeding $50 billion.
