Figma stock has plunged, as concerns surrounding AI mount and Google introduces a new AI-powered design product.
Google Labs introduced a new beta product called Stitch, which allows users to enter a prompt and create a design for their projects.
Google said the feature is a “design agent” that can give real-time design critiques and respond to voice.
The tech giant isn’t charging for Stitch, but also doesn’t make promises about the availability of the service.
This announcement has caused shares of the AI-design platform, Figma, to drop.
The Figma Make tool allows people to type in a few words and have AI models from Anthropic and Google come up with or modify app designs.
At the time of writing, Figma (NYSE: FIG) stock fell 4.12% to US$24.22. However, it has ticked up 0.25% to US$24.28 in after-market trading.
Over the past year, shares for the cloud-based design company have fallen 36.26%.
This also comes after Google and Figma announced an expanded partnership that involved more of Google’s generative AI technology being added to Figma’s platform.
