Google ’s share price has dramatically plunged amid a panic over AI .

Parent company Alphabet finished Thursday down more than 12 per cent, wiping $500 billion from its value. It represents the biggest ever crash in Google’s history, and second only among US listed companies to a $593 billion plunge in Nvidia’s value last year, after the rise of China’s DeepSeek AI brought concerns that US artificial intelligence companies could lose the race.

It comes after Alphabet’s latest results showed disappointing earnings in its search advertising business and the full scale of its vast spending on artificial intelligence .…