Amid the rising competition in the AI space, Google thinks that the upcoming Gemini 4 model will help it climb the ladder. As per the reports, the company admits that it still trails rivals in AI coding and agentic AI capabilities. During the Alphabet’s latest earnings call, CEO Sundar Pichai pushed back on the claims that Google is falling behind. He stated that Gemini 4 is the company’s most ambitious model so far and it has been built on a much larger scale than previous Gemini versions. While Google did not reveal technical details, Pichai said the new model would deliver noticeable improvements once it launches.
His comments come amid reports that Gemini 3.5 Pro has been delayed after failing to meet Google’s internal expectations in coding performance and autonomous AI tasks. These are areas where competitors such as OpenAI and Anthropic have gained momentum with Codex and Claude Code.
As per reports, Pichai acknowledged that coding is one of the areas where Google still needs to improve. Instead of focusing on Gemini 3.5 Pro, the company introduced the Gemini 3.6 Flash model. The company stated that the model delivers stronger coding performance than its predecessor while reducing token usage, making it more cost efficient for developers.
The company also introduced Gemini 3.5 Flash-Lite for lower-cost workloads and Gemini 3.5 Flash Cyber, a cybersecurity-focused model available to select government and enterprise partners. Google said Gemini 3.5 Pro remains in testing with partners ahead of a wider release.
Even after the criticism around the flagship AI model, Google says Gemini usage continues to rise. The company revealed that Gemini now has 950 million monthly active users, up from 750 million in late 2025.
Alphabet also reported strong financial results, with Google Cloud revenue rising 82 per cent year over year to $24.8 billion, driven by growing demand for AI infrastructure and enterprise AI tools.