Alphabet (GOOGL) tumbled Wednesday after Google’s parent company published a new ad for its Bard artificial intelligence chatbot that offered an incorrect answer. Google stock fell more than 8% after the ad fluke.

X

Google posted a video on Twitter demonstrating the “experimental conversational AI service powered by LaMDA,” the company wrote. LaMDA is Google’s Language Model for Dialogue Applications, which applies machine learning to chatbots and allows them to engage in “free-flowing” conversations, the company says.

In the advertisement, Bard is prompted with the question, “What new discoveries from the James Webb Space Telescope can I tell my 9-year old about?”

Bard quickly rattles off two correct answers. But its final response was inaccurate. Bard wrote that the telescope took the very first pictures of a planet outside our solar system. In fact, the first pictures of these “exoplanets” were taken by the European Southern Observatory’s Very Large Telescope, according to NASA records.

ChatGPT Is Just The Dawn Of An Era Of AI-Created Content

Google Chatbot Competition

Google stock fell 8.1% to 98.91. Meanwhile, Microsoft (MSFT) was up marginally.

Microsoft is a major stakeholder in AI competitor OpenAI, which operates the chatbot ChatGPT that went viral in recent weeks. Further, Microsoft announced a multibillion-dollar investment in OpenAI on Jan. 23. The tech giant declined to reveal a specific amount at the time.

But the company this week unveiled a new version of its Bing search engine, which has lagged behind Google, a dominant player in that market. Microsoft plans to power Bing with the same AI technology used by ChatGPT.

Also, Baidu (BIDU) fell 4% Wednesday after leaping to 11-month highs on Tuesday when the China-based rival announced plans for its own AI-powered chatbot.

China e-commerce giant Alibaba (BABA) said Wednesday it’s working on its own AI-fueled chatbot. BABA stock rose a fraction.

You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison

YOU MAY ALSO LIKE:

Is Google Stock A Buy Right Now? Here’s What The Earnings, Chart Says

Get Stock Lists, Stock Ratings And More With IBD Digital

Find Stocks To Buy And Watch With IBD Leaderboard

Identify Bases And Buy Points With MarketSmith Pattern Recognition

Which AI Stocks Should You Be Watching?