Alphabet's shares fell 4% on Thursday due to a report from Bloomberg indicating that the company's Gemini 3.5 Pro AI model is months behind schedule. This delay stems from efforts to enhance the model's performance, particularly its coding capabilities, which reportedly did not meet internal expectations.
This setback is significant as competitors like OpenAI and Meta have recently introduced new AI models that surpass Google's current offerings in software code generation. The Gemini 3.5 Pro was initially announced in May during the Google I/O developer conference, with expectations for a broader rollout soon after.
An Alphabet spokesperson stated that the company is actively testing the model with partners and remains engaged with the U.S. government. The competitive landscape is intensifying, with Meta's recent launch of its Muse Spark 1.1 AI model and OpenAI's release of the GPT-5.6 Sol AI model, both of which emphasize cost-effectiveness and performance in coding tasks.
This delay could impact Alphabet's market position as it strives to keep pace with advancements from its rivals