A Bloomberg report recently said that Google is months behind the launch of its next-generation AI model – Gemini 3.5 Pro dubbed as the company’s powerful flagship AI model. According to the report, efforts to improve performance of the upcoming Gemini 3.5 Pro is the likely reason behind the delay. For those unaware, the model was first announced in May this year as part of the company’s annual Google I/O developer conference. Google then said that the model was being used internally, but wouldn’t be ready for a broader rollout until the following month. Google shares fall by 4%Soon after the Bloomberg report, shares of Google-parent Alphabet sank 4% on Thursday, July 16. In an emailed statement to CNBC, a Google spokesperson said that the company is “shipping quickly across a wide range of models while keeping them highly cost-effective for customers.”“We’re currently testing 3.5 Pro, an upgraded Flash model, and other models with partners, and we’re productively engaged with the U.S. government,” the spokesperson added. Gemini 3.5 Pro delay frustrates Google engineersThe delay in launching Gemini 3.5 Pro has reportedly frustrated some Google engineers, AI researchers and managers, according to 10 current and former employees. They told the publication that some employees are concerned Google could lose its competitive edge as rivals Anthropic and OpenAI continue releasing more capable AI models. The report said Google's model launch process involves multiple teams and stakeholders as the company integrates AI across products such as Search, Maps and YouTube, a process that employees said can slow down releases.“Google has multiple layers of stakeholders involved in preparing models for release, working to weave AI across a vast product portfolio, including search, maps and YouTube, which can cause delays, said the people, who declined to be named discussing internal concerns,” it stated.