By William Gavin and Christine Ji

Meanwhile, several rivals have launched their latest and greatest AI models

Google engineers and AI researchers are reportedly frustrated by the company's delays.

Alphabet shares fell more than 4% on Thursday, reflecting concerns that the Google parent company is falling further behind in the artificial-intelligence race.

Google's Gemini 3.5 Pro, its most powerful AI model to date, is months behind schedule because of the company's work to try and boost its performance, according to Bloomberg. In early June, CEO Sundar Pichai said the model was expected to be launched later that month, but it still has not yet been released.