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Google’s Botched Gemini AI Launch Erases $90 Billion in Stock Value

via Reuters
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Google’s market value dropped by $90 billion due to issues with its new generative AI service, Gemini, which inaccurately depicted historical figures by erasing white people.

The AI also faced criticism for defending pedophilia and making factually incorrect images.

“If Google is seen as an unreliable source for AI to a portion of the population, that isn’t good for business,” Melius Research analysts wrote.

This led Google to apologize, take its image service offline temporarily, and face backlash over accuracy and bias concerns.

The incident highlighted the challenges in developing responsible generative AI and risks damaging consumer trust in Google’s brand as a reliable source of information.

The incident was a “meaningful blunder in the PR battle surrounding [generative AI],” Loop Capital’s Rob Sanderson said. He noted that it proposed Google was “trailing and mis-executing in a fast-moving and high-stakes space.”

This setback comes as Google competes with Microsoft in the race to advance generative AI technology.

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