Google delays Gemini 3.5 Pro after AI model misses coding targets, report says

Google's race to stay at the front of artificial intelligence has reportedly hit another obstacle. According to a Bloomberg report, the company has delayed the release of Gemini 3.5 Pro, its next flagship AI model, after it failed to meet internal performance targets. The biggest concern was said to be coding an area where rivals OpenAI and Anthropic have recently gained significant momentum. The model was expected to launch in June, shortly after CEO Sundar Pichai introduced it during Google I/O 2026, saying it was already being used internally. Months later, however, Gemini 3.5 Pro is still undergoing testing.

The report unsettled investors. Shares of Google's parent company, Alphabet, fell nearly 3 per cent during trading and were down about 4 per cent at one stage.

Coding has become the new AI battleground

The delay highlights how important coding has become in the AI industry. Large language models are no longer judged only by how well they answer questions or generate text. Increasingly, companies want AI systems that can write, review, debug and improve software with minimal human input. According to Bloomberg, Google retrained Gemini with updated data last month to improve its coding ability, but engineers were reportedly disappointed with the results. Meanwhile, OpenAI's GPT-5.6 and Anthropic's Claude Fable 5 have raised expectations across the industry, particularly for enterprise software development.

Internal challenges may also be slowing Google

The report suggests Google's size has become one of its biggest challenges. Unlike AI startups that focus on a single product, Google must coordinate across Search, DeepMind, Cloud, Android, YouTube and other divisions before launching major AI models. One former employee reportedly described the process as trying to "boil an ocean," pointing to overlapping teams, changing priorities and internal competition for computing resources. Google has also tightened oversight around AI development as advanced models face growing scrutiny from governments over safety, national security and misuse.

Google says testing is still underway

Google has not confirmed a launch date for Gemini 3.5 Pro. A company spokesperson told Bloomberg that Google is "shipping quickly across a wide range of models while keeping them highly cost-effective" and confirmed that Gemini 3.5 Pro, an upgraded Flash model and other AI systems are currently being tested with partners. The spokesperson also said Google remains engaged with the US government as oversight of frontier AI models increases.

Is Google really falling behind?

Despite the reported delay, industry observers say Google remains one of the strongest AI players. Its biggest advantage is deep integration across products used by billions of people, including Search, Gmail, Maps, Android, Chrome and Workspace. Gemini also benefits from Google's search index, giving it access to one of the world's largest information ecosystems.

Google recently revealed that around 75 per cent of its internal code is now generated with AI assistance before being reviewed by engineers. The company has also consolidated several coding initiatives under its Antigravity platform to accelerate software development. However, with OpenAI and Anthropic releasing increasingly capable models, expectations for Gemini 3.5 Pro have only grown. The reported delay suggests Google is choosing to refine the model rather than launch a product that falls short of its own standards a decision that could prove important as the AI race enters an even more competitive phase.