Google delays new Gemini model

Summary

CNBC's MacKenzie Sigalos reports that Alphabet shares fell nearly 4% after Bloomberg said Google's flagship AI model, Gemini 3.5 Pro, is months behind schedule. The delay stems from disappointing results in coding capabilities and organizational inefficiencies across Google's many AI-integrated products. The report raises questions about Alphabet's competitive position ahead of its upcoming earnings release.

• Alphabet stock dropped nearly 4% in late trading.
• Bloomberg reported Google is months behind on Gemini 3.5 Pro, its next flagship AI model.
• The model's coding capabilities disappointed after a change in training data.
• Internal frustration is evident, with some employees worried Google is losing ground to OpenAI, Anthropic, and Meta on coding models.
• Organizational challenges: AI woven across Search, Cloud, Android, Maps, YouTube, leading to multiple teams and layers of approval.
• Google said it is testing Gemini 3.5 Pro with partners and working with the US government on safety standards.
• Alphabet reports earnings in less than a week, calling into question whether its distribution advantage can offset frontier AI leadership by rivals.