Google launches a faster, cheaper AI model targeting business automation, amid investor scrutiny over its AI competitiveness and $25 billion bond sale.
Alphabet’s Google released Gemini 3.7 Flash, a new AI model designed for coding and automated business workflows, priced at 75 cents per million input tokens and $3.75 per million output tokens—half the cost of its predecessor. The model aims to improve performance in debugging, code generation, and multi-step task automation, with immediate availability via Gemini Spark in over 160 countries.
The launch follows a $25 billion bond sale and Alphabet’s first quarter of negative free cash flow, heightening investor focus on its AI strategy. Google Cloud’s backlog reached $514 billion, signaling growing demand for its AI-driven cloud services. However, the delayed release of the flagship Gemini 3.5 Pro model has raised questions about Google’s ability to compete with Anthropic and OpenAI.
The pricing cut and rapid iteration reflect Google’s push to attract developers and businesses amid intensifying AI competition. The move comes as Alphabet seeks to convert AI investments into revenue, with cloud and enterprise adoption key to its growth strategy.