The release of Google's cutting-edge AI model has been delayed by months — Bloomberg. Shares fell
Recently, OpenAI and Meta have released models that outperform Google's AI
The market had been awaiting the release of Gemini's flagship model a month ago / Photo: Nwz / Shutterstock.com
Shares of tech giant Alphabet plummeted more than 4% during Thursday’s trading after Bloomberg reported that the company is several months behind schedule with the release of Gemini 3.5 Pro—its most powerful, flagship artificial intelligence model. According to the agency’s sources, the company needs more time to improve the model’s capabilities, particularly in programming.
Details
Alphabet shares fell 4.4% on Thursday to $354.5. Google itself has not announced a delay in the release of Gemini 3.5 Pro, but in May, on its official blog, it promised that the flagship model—which is already in use internally—would be released “next month,” meaning in June. On June 24, Business Insider reported, citing a source within the company, that the release of the 3.5 Pro had been pushed back to July.
“We’re rapidly rolling out a wide range of models while maintaining their high cost-effectiveness for customers,” a Google spokesperson told Bloomberg. According to the spokesperson, the company continues to test the 3.5 Pro, an updated Flash model, and other models with partners, and is also “engaging constructively with the U.S. government on model testing and broader policy frameworks.” The company spokesperson did not provide specific timelines for the model’s market launch.
What's Worrying the Market
The delay in the release of Gemini 3.5 Pro has become a source of frustration for Google engineers, AI researchers, and managers, Bloomberg notes. Many of them fear that the company risks losing its market advantage as competitors Anthropic and OpenAI release models that outperform Gemini, 10 current and former employees told the agency. According to them, Google has several layers of personnel involved in preparing the models for release, and the company itself is trying to integrate AI into its vast product portfolio, including Search, Maps, and YouTube. This can lead to delays, Bloomberg’s sources say.
Enthusiasm for Google’s AI models has pushed the company’s market capitalization above $4 trillion: over the past 12 months, the company’s stock has risen 92%. However, over the past month, they have lost 3.7%, falling more sharply than the Nasdaq Composite “tech” index, which lost 2.4% over the same period. That said, year-to-date, Alphabet has outperformed the index: 13.2% versus 11.4%.
Analysts are strongly recommending buying Alphabet stock: the stock has 62 buy recommendations (Buy and Overweight ratings) and only nine Hold recommendations, according to MarketWatch. No one believes it’s time to sell the stock. The average price target of $436.37 implies a 23% increase from the closing price on July 16.
This article was AI-translated and verified by a human editor
