Alphabet Inc Class CGemini 3.5 Pro AI model is months behind schedule and struggling to match rivals.

Alphabet stock slipped 2% Friday morning after Bloomberg reported that its Gemini 3.5 Pro flagship AI model is months behind schedule and struggling to match rivals OpenAI and Anthropic in coding ability. Engineers are frustrated by the delays, and the company is also balancing demands from Google Search, Maps, and YouTube while facing U.S. government testing requirements for advanced AI models. Analysts forecast Alphabet’s capital investment will approach $187 billion this year, consuming nearly all of its $212 billion in cash from operations and leaving only about $25 billion in free cash flow, down sharply from roughly $73 billion last year. The spending surge and competitive setbacks raise concerns that Alphabet may not have enough to show for its massive AI investments.
Alphabet Inc Class CGemini 3.5 Pro AI model is months behind schedule and struggling to match rivals.