Google's parent company Alphabet's share value fell to $1.702 billion. Earlier today, it was $1.798 trillion. The total loss was $96.9 billion.
It happened because Gemini users complained that Gemini produced biased results against white people.
Dow Jones shared data with Fox Business.
Gemini Image Generation:
The issues emerged with the Gemini image generation feature. The feature launched in February 2024. Social media flooded with inaccurate images generated by Gemini.
Most of the issues are with historical image generation, where Gemini has replaced white people with black people, Asians, or Native Americans.
What is Google Doing?
Google has already paused Gemini's image generation feature to fix the issues.
Sundar Pichai said that the company is working on fixing image-related bias issues. Google understands that such problems are unacceptable.
Google is fixing the issues, and Gemini image generation will return in the coming weeks.
The company has also apologized for Gemini's bias.
Is AI Biased?
Gemini is an AI like other artificial intelligence tools such as ChatGPT and Bing AI. AI documentation tells us that, in some cases, AI can produce biased results.
Like any other technology, AI tools also face issues. The good thing is that Google is working on making AI responsible. And this is what matters when it comes to AI.
What will happen to Alphabet's Market Value?
Alphabet's market value will rise again. A rise and fall in share value happen in all companies. Once Gemini image generation starts producing better and unbiased results, the share value will return to where it was or even better.
What Should AI Companies Learn from This?
Google's step to pause Gemini Image Generation while the issues are fixed is excellent. It is a lesson not only to AI companies but to every business that when you face a problem, it is best to apologize, accept it, and work on fixing it.
Listing to the customers and users is what makes a business valuable.
Google has been doing it for years, which is why the company has built trust.
Conclusion:
Google Gemini's Image Generation has caused a massive fall in Alphabet's share value. The company is fixing issues and pausing the image generation feature till further notice. Google will relaunch the Gemini image generation feature after fixing the problem. It can take a few days or weeks.
Alphabet stock is already recovering. When this article is published, Alphabet's value is $1.71 trillion.
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