Alphabet’s Google Bard AI Chatbot Announcement
The sudden announcement of Alphabet’s Google Bard AI chatbot caught many by surprise. The move came after Microsoft revealed that it would be taking a $10 billion stake in ChatGPT, an AI chatbot developed by OpenAI. The plan is to integrate ChatGPT into Microsoft Teams and the Bing search platform, posing a threat to Google’s monopoly over internet searches.
Google’s Dominance in the Search Engine Market
Google holds a dominant 91% share in the search engine market, with Bing accounting for only 3%. In the last quarter, Google Search brought in more than $42 billion in revenue, which accounted for over half of Alphabet’s total quarterly revenue of $76 billion. If Microsoft were to capture some of this share, it would have a significant impact on Alphabet’s bottom line.
Google Bard AI Chatbot Launch
In response to Microsoft’s announcement, Alphabet held a live stream of its own AI chatbot, Google Bard, from Paris, France. Unfortunately, the launch did not go as planned, as Google Bard made a factual error during the presentation, causing Alphabet’s stock to tumble by 8%.
Impact on Alphabet’s Stock
Despite the initial setback, the author believes that the integration of AI into web searches by both Alphabet and Microsoft can lead to success. They advise not to fall for the sudden sell-offs, as there are likely to be buyers looking to add Alphabet’s stock in the coming weeks. The use of AI chatbots may be the latest trend, but the popularity of “Googling it” among internet users suggests that there may not be much of an impact on Alphabet’s stock.