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Alphabet’s Gemini 3.5 Pro slips again as shares fall
Alphabet shares closed Friday at $346.77, down about 15% from earlier highs, as Bloomberg reported the model is months behind schedule.
Alphabet’s stock slid after reports that its flagship AI model, Gemini 3.5 Pro, is behind schedule. According to Bloomberg, which was cited by Yahoo Finance, Google is working to improve the model’s coding capabilities and some inside the company worry competitors OpenAI and Anthropic are shipping ahead of Gemini.
The delay matters because Google had laid out a faster release cadence after announcing Gemini 3.5 Flash at its I/O conference in mid-May, with Gemini 3.5 Pro expected in June. Instead, the model’s training data was reportedly updated to try to improve coding performance, but the results were described as disappointing.
Yahoo Finance pointed out that coding is a key area for enterprise demand, so a flagship model that cannot meet internal expectations creates risk for Google’s AI position. The stakes also extend beyond product timing, with Alphabet expected to spend as much as $190 billion in capital expenditures this year, much of it tied to AI infrastructure.
With shares having peaked at $408.61 earlier this year before closing Friday at $346.77, the report adds pressure to whether the delay will affect Alphabet’s broader AI investment plans. The discussion in the piece frames the slip as notable mainly because it breaks the intended rapid release rhythm.