Google Delays Gemini 3.5 Pro AI Model Launch; Alphabet Shares Drop 4%

Google's next-generation artificial intelligence model, Gemini 3.5 Pro, has reportedly been delayed, raising fresh questions about the company's position in the rapidly evolving AI race. According to a recent Bloomberg report, the delay is linked to ongoing efforts to improve the model's performance before its public release.

The news also impacted investors, with Alphabet, Google's parent company, seeing its shares fall around 4% following the report.

Google Still Fine-Tuning Gemini 3.5 Pro

Gemini 3.5 Pro was first introduced during Google I/O 2026, where the company described it as one of its most advanced AI models. At the time, Google said the model was being tested internally and would be released to a wider audience later.

However, the latest report suggests that the rollout has been pushed back by several months as engineers continue working on improving the model's capabilities and reliability.

Alphabet Shares React to the Report

Investor sentiment turned negative after reports of the delay emerged. Alphabet's stock dropped nearly 4%, reflecting concerns that Google may be losing momentum in the highly competitive AI market.

The company is facing intense competition as rivals continue introducing increasingly powerful AI models at a rapid pace.

Google Responds to the Reports

In a statement, Google said it is continuing to develop and test multiple AI models while focusing on performance and affordability.

The company added that Gemini 3.5 Pro, an upgraded Flash model, and several other AI systems are currently being tested with selected partners before a broader rollout.

Google did not announce a new public launch date for Gemini 3.5 Pro.

Internal Concerns Over the Delay

According to the report, some current and former employees have expressed frustration over the extended development timeline.

Employees reportedly worry that slower releases could make it harder for Google to keep pace with competitors that are launching new AI products more frequently.

Competition Is Becoming More Intense

The AI industry has become increasingly competitive over the past year.

Companies like OpenAI and Anthropic have continued rolling out new AI models with improved reasoning, coding and productivity capabilities. As a result, expectations for Google's next flagship AI release remain high.

Why Google Is Taking More Time

Unlike many AI companies that focus primarily on standalone chatbots, Google integrates AI across a broad ecosystem that includes Search, Maps, Gmail, Workspace and YouTube.

Because these products serve billions of users worldwide, the company is believed to be conducting additional testing before releasing major AI upgrades to the public.

What Happens Next?

Google has not officially confirmed when Gemini 3.5 Pro will become widely available. For now, the company says testing is ongoing with partners while development continues behind the scenes.

Industry observers will be watching closely to see whether Google can launch a model capable of competing with the latest offerings from OpenAI and Anthropic.

Final Thoughts

The reported delay of Gemini 3.5 Pro highlights the growing pressure in the global AI race. While Google appears focused on delivering a polished and reliable product, the postponement has raised concerns among investors and some employees. With AI evolving rapidly, the company's next flagship model will play a crucial role in determining how well it competes in the months ahead.