Alphabet's stock drops as launch of Gemini 3.5 Pro AI model is delayed

Jul 16, 2026

AI Summary

Alphabet's shares fell by 4% after reports indicated a delay in the release of its Gemini 3.5 Pro AI model. The delay is attributed to the need for performance improvements, particularly in coding capabilities, amid increasing competition from rivals like OpenAI and Meta.

Alphabet's stock declined by 4% following news of a delay in its Gemini 3.5 Pro AI model release.
The model is reportedly months behind schedule due to efforts to enhance its performance, especially in coding tasks.
The Gemini 3.5 Pro was initially announced in May and was expected to be ready for broader use by the following month.
Competitors such as OpenAI and Meta have recently launched new AI models that outperform Google's current offerings in code generation.
An Alphabet spokesperson stated that the company is actively testing the 3.5 Pro model and other upgrades with partners, while maintaining cost-effectiveness for customers.
The AI coding market is becoming increasingly competitive, with companies like Anthropic and Z.ai also offering advanced models.
Meta recently introduced its Muse Spark 1.1 model, while OpenAI launched its GPT-5.6 Sol model, highlighting advancements in AI coding capabilities.

alphabetgeminiai modelstock marketdelay

Alphabet's stock drops as launch of Gemini 3.5 Pro AI model is delayed

Related Stories

DeepSeek Raises Prices for AI Services Significantly

SAP Executive Discusses the Future of AI and Decision-Making in Enterprises

AI Growth Presents Debt Exposure Risks in Private Credit Markets

Silicon Valley Schools Launch Venture Funds with Parent-Investor Support