Alphabet shares fell 4% on Thursday after the company delayed the release of its flagship Gemini 3.5 Pro artificial intelligence model.
Alphabet shares dropped 4% on Thursday following reports that the company has delayed the release of its flagship Gemini 3.5 Pro artificial intelligence model. The search giant is pushing the launch back by several months to improve the model's performance, particularly its coding capabilities, which fell short of internal expectations. The delay comes as competitors such as OpenAI and Meta recently debuted new models that outperform Google's current offerings in generating software code. While Alphabet previously expected a broader rollout in June, the company is now prioritizing refinement to remain competitive. An Alphabet spokesperson stated that the company is currently testing the 3.5 Pro model with partners and remains productively engaged with the U.S. government. The move highlights the growing importance of code-generation in the AI sector. Rivals like Meta and OpenAI are currently pitching their latest models as highly cost-effective solutions for developers, putting pressure on Alphabet to deliver a high-performing, efficient product to its customers.