Google is delaying its Gemini 3.5 Pro AI model by several months after failing internal performance benchmarks. The model missed its initial June and July release targets due to disappointing coding capabilities.
Alphabet (GOOGL) shares fell roughly 4% to 5% following the report. The selloff wiped billions of dollars from the company's market value.
The delay caused frustration among employees concerned that Google is losing ground to OpenAI, Anthropic, and Meta. The model's coding performance reportedly lags behind these rival products.
A Google spokesperson stated the company is shipping various models quickly. Google is currently testing Gemini 3.5 Pro with partners and the U.S. government.