Story

Alphabet Shares Fall After Report of Gemini 3.5 Pro AI Model Delay

ENTHMSVIIDZHZH-TWJAKOHI
Jul 16, 20261 min read
Alphabet Shares Fall After Report of Gemini 3.5 Pro AI Model Delay

Summary

Alphabet Inc. stock declined after a report indicated its next-generation AI model, Gemini 3.5 Pro, is months behind schedule, fueling investor concerns about its competitive position against rivals like OpenAI and Meta.

Text size
Background

Alphabet Inc. (NASDAQ:GOOGL) shares fell on Thursday following a report that its Google division is significantly behind schedule in releasing its most powerful flagship artificial intelligence model, Gemini 3.5 Pro.

Reported Delays and Market Reaction

Shares of the tech giant closed down 2.3% after a Bloomberg report, citing people familiar with the matter, stated that the AI model is months behind its planned delivery. The delay is reportedly due to Google taking additional time to improve the model's capabilities, with a specific focus on its performance in coding tasks.

The setback has reportedly caused frustration within the company, as engineers and researchers worry that Google is losing its competitive edge in the fast-moving AI sector.

Competitive Pressures Mount

This development comes as rivals are aggressively advancing their own AI technologies. The report noted that both OpenAI and Meta Platforms Inc. have recently released new models that outperform Google's current offerings in generating computer code.

Sample IUX Markets – In-articleAd

According to the sources cited by Bloomberg, Google attempted to improve these skills by updating the data used to train its Gemini model late last month, but the results were disappointing. The delay raises concerns among investors about Google's ability to keep pace in a critical area of technological competition.

Google's Position

A Google spokesperson stated that the company is "shipping quickly across a wide range of models" while ensuring they remain cost-effective for customers. The spokesperson added that Google is currently testing Gemini 3.5 Pro, an upgraded Flash model, and other models with its partners.

The report also highlighted potential contributing factors to the timeline, including Google's complex corporate structure and its ongoing discussions with the U.S. government regarding AI model testing and safety standards.

Read next

More on Stocks
Back to latest news

LATEST