Alphabet Shares Tumble 4% as Gemini 3.5 Pro Faces Delays Amid Coding Performance Struggles

Jul 17, 2026
CNBC
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Summary

Alphabet shares tumble 4% as its flagship Gemini 3.5 Pro AI model faces months-long delays due to coding performance struggles, leaving Google scrambling to keep pace with rivals OpenAI and Meta who are already debuting powerful new AI coding models.

Key Points

  • Alphabet shares drop 4% after reports emerge that its flagship Gemini 3.5 Pro AI model is months behind schedule due to performance improvement efforts.
  • Gemini 3.5 Pro's coding capabilities are falling short of internal expectations, putting Google at a disadvantage as rivals OpenAI and Meta debut powerful new AI coding models.
  • Alphabet confirms it is currently testing Gemini 3.5 Pro with partners, stating it is shipping quickly across a wide range of models while keeping them cost-effective for customers.

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