Alphabet’s stock declines as reports indicate a delay in the release of its latest Gemini AI model due to unmet performance targets.
Alphabet Inc. shares fell 2% in trading after reports surfaced that the company delayed the launch of its latest Gemini artificial intelligence model. The delay stems from the product failing to meet internal performance goals, according to sources familiar with the matter.
The setback comes as Alphabet competes with rivals like Microsoft and OpenAI in the rapidly evolving AI sector. Earlier versions of Gemini were positioned as a key driver for Alphabet’s cloud and enterprise offerings, with expectations of a late-2023 release.
The immediate market reaction saw Alphabet’s stock underperform peers in the tech sector, reflecting investor concerns over execution risks in its AI strategy.