Alphabet shares closed down 4.44% at $354.46 on July 16 after a report said the launch of next-generation AI model Gemini 3.5 Pro may be delayed by several months. Difficulties improving Gemini 3.5 Pro’s coding abilities and the relatively weak intelligence score of Gemini 3.5 Flash are fueling concerns over Google’s AI competitiveness. A string of new AI models from rivals including Anthropic, OpenAI and Meta has raised concerns that Google could lose the initiative in the AI race.