Google is holding back the launch of its next flagship AI model, Gemini 3.5 Pro. According to Moomoo, the delay stems from the model's code generation capabilities falling short of the company's internal targets.
Code generation — an AI's ability to write, complete, and debug software — has become one of the fiercest battlegrounds in the AI race, with developers among the most valuable and demanding users of large language models. A model that can't hit its coding benchmarks is a hard one to ship.
Investors reacted quickly. MarketWatch reports that Alphabet's stock fell as the Gemini delays suggested Google is struggling to keep pace with rivals in the AI race. Stocks Down Under similarly noted that Alphabet (GOOGL) shares dropped after Google reportedly delayed Gemini 3.5 Pro.
The sources describe the delay as a reported development rather than a formally detailed announcement, and they do not specify a new launch timeline or say how far the coding results missed their goals.
For Google, the stakes go beyond a single product slip. The company has positioned its Gemini line as central to its answer to competitors' rapid model releases, and each launch is watched as a proxy for whether Google can lead — or merely follow — at the frontier of AI.
Why it matters: when a company as large as Alphabet delays a flagship model over performance shortfalls, markets read it as a signal about who is winning the AI race — and that perception, as much as the technology itself, moves billions in value.