A report that Google's most powerful AI model is running months behind schedule wiped roughly $200 billion off Alphabet on Thursday — and exposed an uncomfortable truth: the company that invented the Transformer is being beaten at the one AI contest that reliably produces revenue, writing software.

July 16 : Alphabet's Google is months behind schedule on the release of Gemini 3.5 Pro, its most powerful flagship AI model, as the tech giant works to improve its capabilities,…

Alphabet announced the Gemini 3.5 Pro AI in May, saying it was being used internally but wouldn't be ready for a broader rollout until the following month.

By William Gavin and Christine Ji