On Tuesday, Google released<\/a> a new product in beta called Stitch, which lets users enter a prompt to create a design for their projects. Google claims the feature is a “design agent” that can give real-time design critiques and that responds to voice.\u00a0<\/p>\n Google isn’t charging for Stitch, nor does it make promises about the availability of the service. But with Wall Street on edge regarding all potential threats from AI, Figma is getting punished. <\/p>\n Shares of Figma dropped 8% on Wednesday, followed by a decline of more than 4% on Thursday. The stock is down about 35% this year, tumbling alongside a broader slide<\/a> in the software industry. <\/p>\n A Figma representative declined to comment. <\/p>\n Figma went public<\/a> in July, assuring investors the company was positioned to benefit as more users turn to AI products for design. Adobe<\/a>\u00a0attempted to buy\u00a0Figma<\/a> in 2023 but ultimately terminated the\u00a0planned<\/a> $20 billion deal due to regulatory hurdles.<\/p>\n Adobe shares are down about 3% over the past two days. <\/p>\n Should Google launch its new feature to paying customers in the future, it could represent an effort to own more of the product design workflow and to keep users inside its enterprise ecosystem. The company has deep pockets, massive distribution and a willingness to bundle products. <\/p>\n Google didn’t immediately respond to request for comment.<\/p>\n In October, Google Cloud and Figma announced<\/a> an expanded partnership that involved more of Google’s generative AI technology being added into Figma’s platform. The Figma Make<\/a> tool allows people to type in a few words and have AI models from Anthropic and Google come up with or modify app designs. <\/p>\n \u2014 CNBC’s Jordan Novet contributed to this report.<\/p>\n
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