Alphabet stock falls on report of Gemini AI model delays

Alphabet shares fell after a Bloomberg report said Google’s Gemini 3.5 Pro flagship AI model is months behind schedule. The delay appears tied to extra work improving coding capabilities, raising investor concern that Alphabet could lose AI momentum to rivals such as OpenAI and Anthropic. The report also noted that Meta and OpenAI have recently released models that outperform Google’s current AI tools for coding. Alphabet said it is shipping models quickly while keeping them cost-effective and is testing upgraded versions with partners. The stock decline reflects worries that execution delays in AI could pressure Alphabet’s competitive positioning across search and its broader product ecosystem, even as the company continues to invest heavily in model development and government engagement on AI safety standards.