Google's Flagship AI Model Delayed Amid Rising Competition in AI Coding

Alphabet Inc.'s (GOOGL) shares sank nearly 5% on Thursday after reports emerged that Google's flagship AI model, Gemini 3.5 Pro, is months behind schedule.

The delay reportedly comes as the company works to improve the model's coding capabilities, which fell short of internal expectations. A person familiar with the matter said the results were disappointing despite an update made in June to train the data used for Gemini.

Google spokespersons say they are continuing to test the model and other AI models with partners while focusing on cost-effective AI deployment. The company has been in discussions with the U.S. government, which has been increasing oversight of advanced AI models and industry safety standards.

Retail traders on Stocktwits largely viewed the selloff as excessive, with some calling it a buying opportunity. One trader said they would rather Google gets it right 'than roll out another inferior product.'