NewsBite analysis · AI, Business
CNBC
Alphabet shares fall on report its most powerful AI model Gemini 3.5 Pro is delayed
Alphabet's anticipated AI model, Gemini 3.5 Pro, has encountered significant delays impacting its market performance, resulting in a 4% drop in shares. Following reports indicating that performance updates and coding capabilities fell short of expectations, concerns rise about its competitive positioning against rivals like OpenAI and Meta, who have recently launched more advanced AI models. The spokesperson stated that testing continues alongside efforts to maintain cost-effectiveness for customers.
MonitorConfidence: HighShort term horizonReputational risk: High
Published 16 Jul 2026, 19:55 UTC1 min read
Visit original article ↗Lead image — CNBC
Summary
TL;DR
- Alphabet shares dropped by 4% following delay reports.
- The Gemini 3.5 Pro AI model is months behind schedule.
- Performance improvements and coding capabilities are cited as major concerns.
- Rivals OpenAI and Meta have released superior AI models recently.
- Alphabet is actively engaged in testing and partnerships.
Interesting facts
- The model was initially announced during Google I/O in May.
- Internal expectations for the model's performance were not met.
- The delay comes at a critical time amid rising competition in AI.