Google's global model sounds the alarm of "grabbing the rice bowl" as panic selling hits the US game sector stocks.

Due to the launch of Project Genie by Google's DeepMind, the market is concerned that this artificial intelligence (AI) tool may disrupt the gaming industry, causing Unity and a number of gaming companies to collectively decline. As of Friday's (January 30th) closing of the US stock market, virtual engine development company Unity Software fell by 24.22%, marking the largest single-day decline since 2022; "Grand Theft Auto" series developer Take-Two Interactive fell by 7.93%, metaverse community Roblox fell by 13.17%; mobile technology company AppLovin fell by 16.89%. Analyst Dylan Becker of investment bank William Blair wrote in a report to clients: "This price reaction further proves that, in the background of AI uncertainty, market sentiment is showing a panic pattern of 'shoot first, ask later', a sentiment that has been suppressing the entire software sector over the past few months." Previously reported by Cailian News, Google's DeepMind opened Project Genie to the public on Friday, which is considered one of the most advanced world models currently, an experimental research prototype of the world model Genie3 and the first time this world model has been made interactively available to the public. Unlike the content-generating large models such as OpenAI's Sora, Genie3's function is not limited to multi-modal content generation, but can generate a complete space, achieving "creating a world out of thin air". Some analysts believe that such tools may fundamentally change the way electronic games are made, and this view has hit the gaming stocks hard. Similarly, the SaaS (Software as a Service) sector has also seen a wave of selling, due to concerns about the capabilities of Anthropic's Claude tool. However, Wall Street analysts as a whole have not lost confidence, with some believing this is an opportunity for investors to buy into Unity at a low price. In a report on AppLovin, Evercore ISI analyst Robert Coolbrith wrote: "We believe that today's movement in gaming stocks largely overlooks the importance of creativity in open-world games and social/network effects." Becker stated that the market is concerned that Google's platform may erode Unity's market share (about 70% of the top 1000 mobile games globally use Unity's tools), but this concern overlooks the fact that Unity's platform has also embedded similar AI capabilities, and related concerns have been "exaggerated." Analyst Nathan Naidu pointed out that this AI tool from Google is "unlikely to threaten EA, Take-Two, Roblox, and Unity in the short term", but he also warned that if it evolves into a platform capable of producing commercial games, it may pose long-term risks. This article is reprinted from the "Cailian News" app, written by Zhao Hao, GMTEight editor: Song Zhiying.