Instrument NameMicrosoft Corp Instrument Symbol(MSFT-Q) Instrument ExchangeNASDAQ
The market is up today, but Alphabet(NASDAQ: GOOG) (NASDAQ: GOOGL) shares traded as much as 2.8% lower in early trading, cutting more than $50 billion off the company's valuation. The stock recovered slightly but it was still down 2% at 11 a.m. ET.
Artificial intelligence (AI) rival OpenAI is holding an event at 1 p.m. ET today and is expected to release a new product. But it's not clear what that product will be after CEO Sam Altman tweeted late last week that it wouldn't be a search engine.
OpenAI and its partner Microsoft have been working to disrupt Google search for years with little success. And with Microsoft now launching services with other AI models, OpenAI needs to find a way to engage both developers and users on its terms. We will see what they introduce, but the market is thinking right now that it won't be good for Google.
Since ChatGPT was introduced, Google's market share hasn't moved and search revenue is growing again. So, there's no evidence in the numbers that OpenAI will take a bite out of Alphabet's cash cow, but the market is still concerned and that's why you see this reaction.
