Google value plunges by $500bn as AI fears rattle Wall Street
Google spooked investors so badly that its stock hit a six-month low, after it revealed its AI search summaries were affecting ad revenue.
Google parent Alphabet lost just over $500bn (£374bn) in value on Thursday after it rattled Wall Street with its last update of the year on its business operations.
Google spooked investors so badly that its stock hit a six-month low, after it revealed its artificial intelligence (AI) summaries on search were affecting ad revenue.
Microsoft and Amazon also updated investors this week, and joined Google in plans to keep spending astronomical sums of cash in an ongoing AI race.
Google's omnipresent search engine now defaults to AI summaries of a person's query, and that hit the number of advertisements it was able to sell during the quarter.