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Google Gemini launch delayed as tech falls short of internal goals, Bloomberg News reports

Published by Global Banking & Finance Review

Posted on July 16, 2026

2 min read

· Last updated: July 16, 2026

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Google Delays Gemini 3.5 Pro Launch as AI Model Falls Short of Company Goals

Gemini 3.5 Pro Delay: Details and Industry Impact

July 16 (Reuters) - Alphabet's Google is months behind schedule on the release of Gemini 3.5 Pro, its most powerful flagship AI model, as the tech giant works to improve its capabilities, particularly in coding, Bloomberg News reported on Thursday.

The delay comes amid fierce competition among AI developers to boost model performance, cut costs and expand enterprise capabilities, fueling a steady, industrywide stream of new systems and reasoning models.

Key Facts About the Gemini 3.5 Pro Delay

Here are some details:

Timeline and Expectations

• The model was due to be released in June, Alphabet CEO Sundar Pichai had said during Google's annual I/O developer conference in May.

Internal Concerns and Competitive Pressure

• The setback has some Google engineers, AI researchers and managers worried as rivals OpenAI and Anthropic release models outperforming Gemini, the report said, citing 10 current and former employees.

Efforts to Improve Gemini 3.5 Pro

• Google late last month updated the data used to train Gemini to improve those capabilities, but the results fell short of expectations, Bloomberg News reported.

Market Reaction

• Shares of Alphabet slipped nearly 3% following the report.

Statements from Google and Industry Rivals

Google's Response

• "We're currently testing 3.5 Pro, an upgraded Flash model, and other models with partners, and we're productively engaged with the U.S. government," a company spokesperson told Reuters in a statement.

• "We're shipping quickly across a wide range of models while keeping them highly cost-effective for customers," the spokesperson said.

Competitor Developments

OpenAI's Latest Model

• OpenAI launched GPT-5.6, its most advanced model, last week after a delay prompted by the U.S. government's requests over national security concerns about the potential misuse of powerful AI tech.

Anthropic's AI Model Restrictions

• Anthropic had disabled its most advanced AI models, Mythos 5 and Fable 5, for all users after a June 12 U.S. export control order citing national security concerns.

• The curbs were lifted in late June after Anthropic added safeguards.

(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)

Key Takeaways

  • Gemini 3.5 Pro was announced at Google I/O in May with a planned June release, but work to improve capabilities—particularly in coding—has pushed the timeline back according to Bloomberg News (en.wikipedia.org).
  • The delay highlights intensifying competition in advanced AI, where OpenAI’s GPT‑5.6 (Sol, Terra, Luna) launched last week with strong performance benchmarks, and Anthropic restored access to its Fable 5 and Mythos 5 models after U.S. export-control restrictions were lifted in late June (axios.com).
  • These developments underscore the dynamic AI landscape: Google is recalibrating its rollout, while rivals are delivering powerful models amid regulatory scrutiny and government collaboration (washingtonpost.com).

References

Frequently Asked Questions

Why has Google delayed the launch of Gemini 3.5 Pro?
Google delayed the Gemini 3.5 Pro launch as the AI model fell short of internal goals and required more improvements, particularly in coding.
Which companies are Google competing with in AI model development?
Google is competing with OpenAI and Anthropic, whose latest models have reportedly outperformed Gemini.
How has the Gemini delay impacted Alphabet’s shares?
Shares of Alphabet slipped nearly 3% following the report of the Gemini 3.5 Pro delay.
When was Gemini 3.5 Pro originally expected to launch?
Gemini 3.5 Pro was originally due for release in June, as announced during Google's I/O developer conference in May.
What actions are rivals OpenAI and Anthropic taking with their AI models?
OpenAI launched GPT-5.6 after a security review and Anthropic temporarily disabled its advanced models following a U.S. export control order.

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