Overview
- Bloomberg reported Thursday that Gemini 3.5 Pro is now months behind the June rollout Sundar Pichai announced at Google I/O.
- Company sources say the flaghip missed internal performance goals on code generation and agentic coding, which are key for enterprise customers.
- Google retrained Gemini with updated data in late June to improve coding ability but internal tests produced disappointing results.
- The delay rattled markets, with Alphabet shares falling roughly 3–4% after the report, and has raised frustration among engineers who fear losing ground to rivals.
- Rivals such as OpenAI and Anthropic have shipped stronger coding-focused models, and Google is consolidating internal teams and running partner and U.S. government tests to close the gap.