Updated
Updated · CNBC · Jul 16
Alphabet Slides 4% as Gemini 3.5 Pro Delay Extends by Months
Updated
Updated · CNBC · Jul 16

Alphabet Slides 4% as Gemini 3.5 Pro Delay Extends by Months

3 articles · Updated · CNBC · Jul 16

Summary

  • Alphabet shares fell 4% on Thursday after Bloomberg reported Gemini 3.5 Pro is months behind schedule, extending a launch timetable Google had expected to reach by June.
  • Gemini 3.5 Pro's coding performance missed internal expectations, prompting more work to improve the model as code generation becomes a key battleground in AI.
  • The delay leaves Google exposed as OpenAI and Meta push newer coding-focused models; OpenAI said its GPT-5.6 Sol is 54% more token efficient on agentic coding tasks.
  • Google said it is still testing 3.5 Pro, an upgraded Flash model and other systems with partners, while stressing it is shipping models quickly and keeping them cost-effective.

Insights

Is Google’s AI delay a sign of responsible caution or a deep crisis against its fast-moving rivals?
Could decentralized training end the AI dominance of tech giants by slashing development costs and failures?