Alphabet Inc.

(NASDAQ:GOOG) shares are trending and still trading lower after sinking Thursday on reports that the company's next major AI model is running significantly behind schedule.

Google Delays Gemini 3.5 Pro Release Bloomberg reported that Google has pushed back the release of Gemini 3.5 Pro by several months, with engineers still working to close a coding performance gap against rivals like OpenAI and Anthropic.

Sources familiar with the matter told Bloomberg the delay has frustrated employees internally and stoked concern that Google could lose further ground in one of AI's most commercially important categories.

Bloomberg's reporting points to organizational sprawl as a root cause — separate teams within DeepMind, Cloud, Android, and Search are each building AI coding tools in parallel, resulting in duplicated work and slower decision-making.