Alphabet's Gemini Delay, Spending Worries Loom over Earnings
Alphabet’s delayed flagship model has deepened investor concerns over whether its AI and data-center spending will deliver returns, even as cloud sales jumped 63%.
- Alphabet delayed the launch of its flagship Gemini 3.5 Pro model from June, raising investor concerns ahead of the company's second-quarter earnings report on Wednesday.
- Scrutiny over massive data-center spending persists after Alphabet raised its 2026 capital expenditure guidance to between $180 billion and $190 billion in April, alongside plans to raise about $85 billion in equity.
- Analysts forecast a 21.3% revenue rise to $116.93 billion for the April-June period, with cloud sales estimated to grow 64% while ad revenue expands at a slower 13.7%.
- Alphabet shares remain nearly 13% higher for the year despite falling about 9% since April, as Chinese open-source models challenge U.S. labs in the competitive AI market.
- High-Profile departures, including Gemini co-lead Noam Shazeer and Google DeepMind executive John Jumper, have impacted Google, though Dave Wagner of Aptus Capital Advisors said, "Google's strategy is all about the ecosystem.
16 Articles
16 Articles
Google updates lightweight Gemini models, but flagship still delayed
Alphabet's Gemini delay, spending worries loom over earnings
The Google parent - set to report second-quarter results on Wednesday - has delayed from June the launch of its next flagship model, Gemini 3.5 Pro, built especially to catch up with rivals in the lucrative market for AI coding tools and agentic AI tasks.
Google’s Gemini 3.5 Pro Delay Signals Cracks in AI Race as Stock Slips
Alphabet’s flagship AI model remains stuck in testing. Gemini 3.5 Pro missed its promised June launch. June became July. Now insiders wonder when it arrives at all. Shares have slid 15% from their 2026 peak. The pressure builds. Google introduced Gemini 3.5 Flash at its I/O conference in mid-May. Executives positioned the lighter model as a speed demon for agents and coding. They promised the heavier Pro sibling would follow one month later. Tha…
Gemini AI Model Delays Put Alphabet Under Pressure Ahead Of Q2 Earnings
Gemini AI model delays put Alphabet under pressure ahead of Q2 earnings Alphabet is facing increased scrutiny from investors as delays in launching a key Gemini AI model add to concerns over the returns from its massive data center investments, months after the company raised expectations with a strong quarter for cloud sales. Google’s parent company has delayed the launch of Gemini 3.5 Pro, its next flagship AI model, from June as it seeks to c…
Alphabet, big tech controller, will release results this Wednesday.
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