Alphabet, the parent company of Google, suffered one of its steepest market setbacks of the year on Monday, with its shares tumbling by more than 5 per cent and briefly shedding nearly 7 per cent during trading. The sell-off wiped out billions in market value as investors grew increasingly uneasy about the tech giant's position in the intensifying artificial intelligence race.
The decline came despite Alphabet announcing a high-profile partnership between its DeepMind division and independent film studio A24, including a $75 million (£59.1 million) investment to explore how generative AI can be used in filmmaking and television production. Instead of lifting sentiment, the Hollywood tie-up was overshadowed by concerns over an AI talent exodus and mounting legal and regulatory pressures facing the company.
