Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) shares sank on Thursday following reports that Google is running months behind on its Gemini 3.5 Pro launch as it works to improve the model.
- GOOGL stock is down. See the chart and price action here.
Gemini’s Coding Weakness Puts Google Behind Rivals
Bloomberg reported that the release of Gemini 3.5 Pro has slipped by several months as engineers work to improve the model’s capabilities, particularly in coding—an area where rivals like OpenAI and Anthropic have taken a clear lead.
The delay has frustrated employees and raised concerns that Google risks ceding further ground in one of the most commercially critical segments of AI, according to sources familiar with the matter.
At the core of the slowdown is organizational complexity, per Bloomberg’s report. Multiple teams across Google — including DeepMind, Cloud, Android and Search — are simultaneously developing AI coding tools, leading to overlapping efforts, shifting priorities and slower execution.
Recent attempts to improve Gemini’s coding performance, including updated training data, have reportedly fallen short. Meanwhile, competitors continue to roll out more advanced models, widening the performance gap.
Google Defends Pace, Highlights Ongoing Testing
"We’re shipping quickly across a wide range of models while keeping them highly cost-effective for customers," a Google spokesperson told Bloomberg in a statement. "We’re currently testing 3.5 Pro, an upgraded Flash model, and other models with partners, and we’re productively engaged with the US government on model testing and broader frameworks."
The setbacks have weighed on investor sentiment, with Alphabet shares slipping following the report, highlighting growing skepticism about Google’s ability to maintain its edge in AI.
GOOGL Stock Price Activity: Alphabet stock was down 4.52% at $354.17 at the time of publication Thursday, according to data from Benzinga Pro.
Photo: Shutterstock
Login to comment