Gemini 3.5 Pro Reportedly Faced Delays (2 minute read)

# Alphabet shares fall on report its most powerful AI model Gemini 3.5 Pro is delayed Source: [https://www.cnbc.com/2026/07/16/alphabet-stock-gemini-3-5-pro-ai.html](https://www.cnbc.com/2026/07/16/alphabet-stock-gemini-3-5-pro-ai.html)  [Alphabet](https://www.cnbc.com/quotes/GOOG/)shares sank 4% on Thursday following a report that the company has delayed releasing its flagship[artificial intelligence](https://www.cnbc.com/ai-artificial-intelligence/)model\. The search giant's Gemini 3\.5 Pro AI model is months behind schedule due to the company's efforts to improve its performance, according to[Bloomberg](https://www.bloomberg.com/news/articles/2026-07-16/google-gemini-launch-delayed-as-tech-falls-short-of-internal-goals), citing sources familiar with the matter\. The model's coding capabilities, in particular, were short of internal expectations and come at a time when rivals like[OpenAI](https://www.cnbc.com/quotes/OPENAI.FG/)and[Meta](https://www.cnbc.com/quotes/META/)have recently debuted new AI models that outpace Google's current offerings in generating software code, the report said\. The company previously announced the[Gemini 3\.5 Pro AI model](https://www.cnbc.com/2026/05/19/google-ai-ultra-gemini-spark-omni.html)in May as part of the company's annual Google I/O developer conference, saying at the time that it was being used internally, but wouldn't be ready for a broader rollout until the following month\. An Alphabet spokesperson told CNBC in an emailed statement that the company is "shipping quickly across a wide range of models while keeping them highly cost\-effective for customers\." "We're currently testing 3\.5 Pro, an upgraded Flash model, and other models with partners, and we're productively engaged with the U\.S\. government," the spokesperson said\. ## Read more CNBC tech news - [Elon Musk's Memphis AI empire is the epicenter of the data center backlash](https://www.cnbc.com/2026/07/16/elon-musk-memphis-ai-colossus-data-center.html) - [Chinese startup Moonshot AI unveils Kimi model it says rivals OpenAI, Anthropic](https://www.cnbc.com/2026/07/17/moonshot-ai-kimi-k3-model-openai-anthropic-china.html) - [SpaceX stock falls after Starship test flight aborted](https://www.cnbc.com/2026/07/17/spacex-stock-starship-test-flight-aborted.html) - [Microsoft's Nadella criticizes Anthropic's Fable for being 'editorially controlled'](https://www.cnbc.com/2026/07/16/microsoft-ceo-says-anthropic-fable-request-policy-doesnt-make-sense.html) Code\-generation has become one of the biggest use cases for AI model providers like[Anthropic](https://www.cnbc.com/quotes/ANTHR.FG/)and OpenAI and Chinese AI labs like[Z\.ai](https://www.cnbc.com/quotes/2513-HK/)that offer[so\-called open\-weight variants](https://www.cnbc.com/2026/01/26/american-ai-coding-agents-are-impressive-but-so-are-chinas.html)that developers can access for free via the open\-source ecosystem\. Meta debuted last week its[Muse Spark 1\.1 AI model](https://www.cnbc.com/2026/07/09/meta-jumps-into-ai-coding-market-to-chase-anthropic-and-openai.html), which the company's AI chief Alexandr Wang described as the social media giant's "strongest model for agentic and coding work yet\." OpenAI last week released its[GPT\-5\.6 Sol](https://www.cnbc.com/2026/07/08/openai-expanding-gpt-5point6-ai-model-release-ending-government-limits.html)AI model, which CEO[Sam Altman](https://www.cnbc.com/sam-altman/)said is 54% more token efficient on[agentic coding tasks](https://www.cnbc.com/2026/07/09/open-ai-sam-altman-chatgpt-5-6-sol.html), underscoring how AI labs are pitching their respective AI coding models as being cost\-effective relative to their performance\. Stock Chart IconStock chart icon Alphabet stock chart