Google’s World-Generating AI Product Causes Selloff in Videogame Stocks
The reaction to Google’s new product is yet another example of the acute sensitivity of equity investors to potential AI threats to traditional software—even if the threats are half-baked. For instance, Google called the product an “experimental research prototype” and said “generated worlds might not look completely true-to-life or always adhere closely to prompts or images, or real-world physics.” It added that “characters can sometimes be less controllable, or experience higher latency in control.”
Investors likely are considering the possibility that Google could quickly improve the product to the point where it can materially draw interest from videogame creators. For now, Google is including Project Genie in a large bundle of AI services for $249 a month.