Alphabet Stock Falls over 4%. Google Postpones Gemini Release as AI Model Fails to Meet Internal Benchmarks

Alphabet Inc.'s Google is reportedly several months late in launching Gemini 3.5 Pro, its most advanced flagship AI model, as the company has spent additional time attempting to enhance its performance, especially in coding tasks, according to sources with knowledge of the situation.

Alphabet stock dropped over 4% on the news.

This postponement has reportedly caused dissatisfaction among Google engineers, AI researchers, and managers, with many worried that the company could forfeit its competitive advantage as competitors like Anthropic and OpenAI release models that surpass Gemini's abilities, as stated by ten current and former employees.

The sources, who asked not to be identified while discussing internal matters, noted that Google has numerous stakeholder layers involved in readying models for launch, as it works to integrate AI throughout a wide range of products such as search, maps, and YouTube, a process that can lead to delays.