OpenAI’s actions allegedly lead to Google parent Alphabet stock drop

The Information said that Microsoft-backed ChatGPT maker OpenAI is developing a web search product that would directly compete with Google. This news is said to have caused a fall in Alphabet Inc.’s stock value, which owns the massive search engine Google.

This occurs a year after Google was directly targeted by Microsoft CEO Satya Nadella, who added Copilot AI capabilities to Bing and declared on Decoder, “I want people to know that we made them dance.” The Sam Altman-led business received billions of dollars from Microsoft last year, and the corporation has been incorporating its technology into Bing and other goods and services.

According to the article, which cited unidentified sources, OpenAI, which made waves in the world last year, has been working on a web search engine that is partially powered by Microsoft Bing.

Ever since OpenAI ChatGPT went worldwide and Microsoft accelerated AI, Alphabet appears to have been lagging behind. Google unveiled Gemini 1.5 on Thursday, an update to their AI model suite that was first introduced two months ago. Users may now ask Google’s AI to evaluate far more stuff than they could previously with just one prompt: 30,000 lines of code, 11 hours of audio, or an entire hour of video, according to Google.

Alphabet CEO Sundar Pichai hailed the development as one of several “breakthroughs” that would power his company’s diverse industries in a Reuters interview. Fundamentally, he stated, the mainstay of the search industry was enabling a new mode of inquiry.

You’re radically expanding the scope of the inquiries individuals can ask about the world.

According to Reuters, the accelerating arms race in Silicon Valley to develop the most advanced – and commercially viable – technology yet is reflected in Google’s increasingly ravenous AI, which follows releases by OpenAI, the company that created ChatGPT, and other companies.

From $59.0 billion in the previous year to $65.5 billion in the fourth quarter, Alphabet’s ad revenue increased. While YouTube’s ad revenue climbed from $8 billion in 2022 to $9.2 billion in 2023, Google’s ad revenue increased by $6.48 billion from the previous year.