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Since the rise in popularity of ChatGPT following OpenAI’s research beta launch late last year, crypto AI tokens have been pumping hard with monthly gains of over 200% in some cases.

However, the momentum for the resurgence in AI popularity may be dwindling after Google’s recently launched advertising campaign for its own AI chatbot, Bard, demonstrated multiple factual inaccuracies in the bot’s responses. Shares in Alphabet, Google’s parent company sank in pre-market trading on Feb. 8 after an advert for its new AI chatbot included factual inaccuracies.

Shares in GOOG were up 24.9% since the start of the year before the 5% drop in pre-market trading on Feb. 8. As of press time, GOOG has continued to trade sideways, down 6.26% on the day.

The crypto AI industry appears to be reacting to Google’s performance, with many projects in the top 10 down more than 5%. The outliers are The Graph and dKargo, which have outperformed the sector over the past 24 hours.

The Graph has invested in AI technology such as Semiotic but has a core focus on blockchain data optimization and aggregation, thus differentiating itself from others on the list. dkargo, the other outlier, also has a grounding in data optimization, focusing on supply chain logistics while integrating AI to enhance its ability to crunch data.

ZeroHedge identified issues with Google’s advertising campaign as a video looked to answer a prompt about the James Webb Space Telescope.

“What new discoveries from the James Webb Space Telescope (JWST) can I tell my 9-year old about?”

The answer included information suggesting the JWST took the first photo of a planet outside Earth’s solar system. However, ZeroHedge identified that this was inaccurate.

“The first pictures of exoplanets were taken by the European Southern Observatory’s Very Large Telescope (VLT) in 2004, as confirmed by NASA.”

Concerns were thus raised regarding the quality of AI-generated information due to Google’s inability to showcase an accurate version of its ChatGPT competitor technology.

Fears of an AI bubble were increased as NEAR protocol tweeted, “AI is #NEAR,” with its price surging 11% shortly after. Crypto projects affiliated with AI technology appear to be performing exceptionally well in 2023.

However, with Google faltering in its desire to enter the AI chatbot arena, the near-term future of the crypto AI sector hangs in the balance.

The post Crypto AI tokens struggle as Google chatbot ad campaign shows factual issues; stock falls 6% appeared first on CryptoSlate.

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