Google’s parent company, Alphabet, experienced a significant downturn in market value, shedding over $70 billion as stock prices plummeted by as much as 4.4 percent on Monday. The decline followed the suspension of Google Gemini’s AI image creator and concerns arising from Gemini’s responses in its chat feature.
According to reports from Bloomberg, Melius Research analyst Ben Reitzes cautioned investors in a research note, highlighting that issues with Gemini could undermine Google’s reputation as a reliable source for AI technology. As various companies venture into launching their AI platforms, the problems encountered with Gemini could erode trust and perception in Google’s capabilities.
Reitzes emphasized the transformative potential of AI-infused features in search behavior, asserting that the evolving landscape presents opportunities for competitors. He underscored that if users perceive Google’s AI as unreliable or biased, it could catalyze a shift towards alternative platforms.