GOOGL Stock Falls 5% As Google’s Flagship AI Model Reportedly Runs Behind Schedule — Why Retail Traders Aren’t Worried

• Google said it is continuing to test Gemini 3.5 Pro and other models with partners while focusing on cost-effective AI deployment.
• The delay comes as OpenAI and Meta have launched newer AI models with stronger software code-generation performance.
• Stocktwits retail traders largely viewed the selloff as excessive, with some calling the dip a buying opportunity.

Alphabet Inc. (GOOGL) shares sank nearly 5% on Thursday after a report said Google is months behind schedule in releasing Gemini 3.5 Pro, its flagship artificial intelligence model. The report added that the company has delayed the launch as it works to improve the model’s capabilities, particularly in coding.

GOOGL shares ended Thursday’s regular session down nearly 4.5% before trimming some of those losses in after-hours trading. At the time of writing, the GOOGL stock was up 0.22% in the extended session.

Why Gemini 3.5 Pro Is Running Behind

Google is taking additional time to improve Gemini 3.5 Pro’s performance after the model fell short of internal expectations in coding, reported Bloomberg. The delay has reportedly frustrated Google engineers, AI researchers, and managers, many of whom are concerned the company risks losing its competitive edge as rivals Anthropic and OpenAI continue to release more capable AI models.

The report said Google’s complex product ecosystem has also contributed to the delay, with multiple layers of stakeholders involved in preparing AI models for release across products, including Search, Maps, and YouTube.

In June, Google reportedly updated the data used to train Gemini in an effort to improve its coding capabilities, but one person familiar with the matter said the results were disappointing.

Google Says Testing Continues

A Google spokesperson told Bloomberg that the company is “shipping quickly across a wide range of models while keeping them highly cost-effective for customers.” The spokesperson added that Google is “currently testing 3.5 Pro, an upgraded Flash model, and other models with partners,” and is “productively engaged with the U.S. government” on model testing and broader AI safety frameworks.

Google had been widely expected to release Gemini 3.5 Pro at its May developer conference. The company has also been in discussions with the U.S. government, which has been increasing oversight of advanced AI models and industry safety standards.

The reported delay comes as competition in AI coding models intensifies. Both OpenAI and Meta Platforms have recently released new models that outperform Google's current offerings in software code generation, according to the report.

GOOGL Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment toward GOOGL jumped to ‘bullish’ from ‘neutral’ a day ago, while message volume was ‘normal’ at the time of writing.

The reported delay to Gemini 3.5 Pro prompted a wave of reactions on Stocktwits, with many retail traders viewing the selloff as overdone.

One bullish trader said “taking a few extra months to get the coding capabilities right is the smart move,” adding that “quality over haste” would better protect Google’s reputation with developers.

Another trader said they would rather that Google gets it right “than roll out another inferior product,” adding they were “buying the juicy dip.”

One trader dismissed the market reaction altogether, calling the Gemini 3.5 Pro delay “a total overreaction.”

GOOGL shares have gained around 14% year-to-date.

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