Shares of Alphabet Inc. (NASDAQ:GOOGL) closed down 4.4% on Thursday, representing a loss of $200 billion in market capitalization. The drop came after a report from Bloomberg revealed months of delays in the delivery of Gemini 3.5 Pro, Google's most advanced artificial intelligence model.
According to the report, the delay is due to Google spending more time improving the model's capabilities, especially in programming. The setback has generated frustration among engineers, AI researchers, and company executives.
Alphabet's shares closed down 4.4% on Thursday
Why the launch of Gemini 3.5 Pro is delayed
Sources cited by Bloomberg indicated that many Google employees fear the company will lose market position as its rivals Anthropic and OpenAI release models that surpass Gemini's capabilities.
Both OpenAI and Meta Platforms recently launched new models that exceed Google's current offerings in artificial intelligence for code writing.
Google's attempts to improve the model
At the end of last month, Google updated the data used to train Gemini in an effort to enhance its programming skills. However, according to the report, the results were disappointing.
Google's attempts to improve the model
What Google said about the delays
A spokesperson for Google stated that the company is rapidly launching products across a wide range of models while keeping them profitable for customers.
The spokesperson added that Google is currently testing the 3.5 Pro model, an enhanced Flash model, and other models alongside its partners, and is maintaining a productive dialogue with the U.S. government regarding model testing and regulatory frameworks.
What Google said about the delays
Why Google's structure complicates launches
The report notes that Google's structure, with multiple layers of stakeholders involved in preparing models for launch, can lead to delays.
This is compounded by the integration of artificial intelligence into a broad portfolio of products that includes Search, Maps, and YouTube, in addition to ongoing discussions with the U.S. government, which is increasingly overseeing advanced AI models from companies regarding capabilities and safety standards.
What to expect from Alphabet's upcoming results
Alphabet will release its quarterly results next week. Investors will be watching for a possible update from management on the revised timeline for Gemini 3.5 Pro and the company's overall artificial intelligence development strategy.
