Alphabet shares fall 4.4% on a report of delay to the Gemini 3.5 Pro AI model

Shares of Alphabet, Google's parent company, fell about 4.4% on Thursday, July 16, 2026, wiping an estimated $200 billion off the company's market value. The drop followed a Bloomberg report that the launch of Gemini 3.5 Pro, Google's most powerful AI model, has been delayed by months.

According to the report, the model had been due for release in June, when Alphabet CEO Sundar Pichai unveiled it at the Google I/O developer conference in May. The delay has been attributed to Google's efforts to improve the model's capabilities, particularly in coding, and has raised concerns that Google is falling behind rivals such as OpenAI and Anthropic.