Back
Alphabet shares sink after report of Gemini 3.5 Pro delay

Alphabet shares sink after report of Gemini 3.5 Pro delay

Google’s next AI model remains delayed after missing coding-performance goals, while a second law firm said it is investigating possible securities-law violations tied to the stock drop.

Fact Check
Multiple independent, credible outlets confirm the core claim. The CNBC report states Alphabet stock dropped ~4% after a report the Gemini 3.5 Pro model is delayed after missing internal coding benchmarks. Yahoo Finance corroborates a 4.4% drop citing a Bloomberg report that the model is months behind schedule, with weak internal results and researcher/engineer frustration. These match the claim's assertions of shares sinking, missed internal coding/performance goals, a slipped launch, and morale/departure concerns. The original Bloomberg article could not be fetched directly (bot verification), but the two accessible sources independently confirm the substance.
    Reference: 12
Summary

Alphabet shares fell after a report said Google’s Gemini 3.5 Pro launch had been delayed by several months, missing the June target the company outlined at its May I/O developer conference. The setback centers on difficulties improving the model’s coding capabilities, with Bloomberg reporting that a late-month training-data update aimed at boosting coding performance produced disappointing results. The decline added to concerns that Google’s AI lead could be slipping as rivals including Anthropic, OpenAI and Meta roll out new models in rapid succession. Bloomberg also reported that some inside Google worry Gemini is losing ground in coding performance, while benchmarking firm Artificial Analysis gave Gemini 3.5 Flash an intelligence score of 50, behind Claude Fable 5 at 60 and GPT-5.6 Sol at 59. The report said some researchers have left for competitors including Anthropic, and that Google’s broad product structure may be slowing decision-making compared with companies focused more narrowly on AI development. Following the share drop, the Law Offices of Frank R. Cruz and the Law Offices of Howard G. Smith said they were investigating Alphabet over possible federal securities law violations.

Terms & Concepts
  • Gemini 3.5 Pro: Google’s next-generation artificial intelligence model, whose planned launch has reportedly been delayed.
  • coding capabilities: An AI model’s ability to generate, understand and work with software code, a key benchmark in the industry.