Sundar Pichai says "applying a lot of our compute and effort in that direction" for Gemini 4

Alphabet reported its best-ever quarter for Google Cloud revenue, but after-hours shares dropped roughly 3% after the company raised its 2026 capital spending forecast to between $195 billion and $205 billion and posted its first negative free cash flow. During the earnings call, analysts pressed CEO Sundar Pichai about delays to its flagship Gemini 3.5 Pro model, which has fallen behind rivals in AI coding tools. Pichai acknowledged the company needs to improve in coding, said testing of Gemini 3.5 Pro continues, and noted that training on the next-generation Gemini 4 has begun, with the company directing substantial computing resources and effort toward that work to stay competitive. The results underscore Wall Street’s mounting scrutiny of Alphabet’s AI roadmap amid rising costs and fierce competition from OpenAI, Anthropic, and Chinese open-source models.