Stocks
Alphabet Stock Drops 4% Amid AI Price War Concerns
Alphabet's stock price dropped nearly 4% in one day due to concerns over its search business being threatened by Meta's Muse AI assistant and OpenAI's price cuts on their newest models.
The decline was triggered after Meta shares surged 11% as Muse reached the top of Apple's U.S. App Store, with some analysts pointing to the potential for agents like Muse to reduce queries, which are what Google's ad business sells.
Google Cloud CEO Thomas Kurian argued that the company's chip economics are more competitive than rivals, claiming a 2.7x better price performance for training and 80% better price performance for inference.