Did Google's ChatGPT prototype really cost the company $100 billion? The answer lies in the early days of Bard, Google's answer to the viral AI chatbot. While ChatGPT continues to be the talk of the town, its spinoff Bard, created by Google, has also amassed its own fair share of traction. The hype surrounding Bard quickly turned sour after a demonstration showcased an inaccurate response to a seemingly simple query.

Right after the inaccurate response was given, the parent company of Google, Alphabet Inc, shed more than $100 billion in market value. This dramatic drop fueled speculation about the potential risks and challenges associated with rapidly deploying AI technology. The AI-powered ChatGPT failed to impress at the event triggering worries that the Google parent is losing ground to its rival Microsoft. Alphabet shares fell 8 per cent or a significant portion of its overall valuation.

But the mistakes by the nascent technology are starting to pile up, and Google’s up-and-coming A.I.-powered chatbot has already cost the company $100 billion in market cap. Resultantly, people from the tech world and beyond are questioning the readiness of AI models for widespread use and the impact of inaccuracies on investor confidence. This incident serves as a cautionary tale about the importance of rigorous testing and validation before showcasing AI technology on a large scale. While Google is undoubtedly investing heavily in AI, the incident underscores the sensitivity of the market to perceived failures in this rapidly evolving field.