Google has delayed the launch of Gemini 3.5 Pro after the model failed to meet internal performance goals, particularly in coding capabilities, pushing it past its original June 2026 release window with no firm new date on the calendar. Alphabet’s stock dropped approximately 4% during intraday trading following Bloomberg’s report on the postponement. The original release window was June 2026. Some sources now point to a potential mid-July launch, possibly around July 17, but only if current efforts to improve the model actually work. Reports suggest internal dissatisfaction is running high, with discussions about scrapping previous base models entirely and rebuilding from scratch. The problems extend beyond coding to token efficiency, AI agentic features, and the model’s ability to handle long-horizon tasks. The approximately 4% drop in Alphabet’s stock matters for context, as tech stocks tied to AI narratives have been trading at premium valuations. For crypto markets, AI-adjacent tokens have increasingly traded in sympathy with major AI developments in traditional tech.