Google value plunges by $500bn as AI fears rattle Wall Street
Google's parent company Alphabet has suffered its worst day ever on the stock market, losing more than five hundred billion dollars in value as investors worried about the cost of the artificial intelligence race.
Google's parent company Alphabet has just had its worst day ever on Wall Street. Shares fell nearly thirteen percent, wiping out more than five hundred billion dollars in market value in a single day.
The trigger was artificial intelligence. AI summaries in search are cutting into advertising revenue, while the company pours billions into building its AI capabilities.
The company's cash flow turned negative by more than nine billion dollars in the quarter, far worse than investors had expected. Alphabet still plans to spend between one hundred and ninety five and two hundred and five billion dollars on investment this year.
Google is not alone in feeling the pressure. Amazon shares fell too, and technology stocks slid across Asia as investors asked whether all this AI spending will actually pay off.
Reporting based on coverage from BBC News.