Glancy Prongay Wolke & Rotter LLP is investigating Alphabet Inc. (NASDAQ: GOOGL) for possible violations of federal securities laws. The probe centers on disclosures regarding the company's flagship AI model and its capital expenditure outlook.

The investigation was triggered by reports that Google is months behind schedule on delivering Gemini 3.5 Pro. Bloomberg reported on July 16, 2026, that updates to training data yielded disappointing results.

Market Reaction

Following the report on AI delays, Alphabet’s stock price fell $16.46, or 4.4%, to close at $354.46 per share on July 16, 2026.

Further declines occurred after the company released its second quarter 2026 financial results on July 22, 2026. The stock fell $24.40, or 7.13%, to close at $317.69 per share on July 23, 2026.

Financial Disclosures

During the earnings call on July 22, 2026, Chief Financial Officer Anat Ashkenazi disclosed a significant expansion of expected full year 2026 capital expenditures to $195 billion to $205 billion. The company also reported negative free cash flow of $5.9 billion for the quarter.

Chief Executive Officer Sundar Pichai stated only that "Gemini 3.5 Pro is currently in testing." No additional details on the expected commercial launch, customer adoption, or financial impact were provided.

What the Numbers Show

The divergence between the massive expansion in capital expenditure guidance and the lack of specific commercial timelines for the flagship AI model highlights the uncertainty surrounding the return on these investments. Investors reacted negatively to the combination of rising costs and delayed product delivery.

Investor Action

Investors who lost money on Alphabet shares are urged to contact Glancy Prongay Wolke & Rotter LLP. The firm represents investors in securities litigation and has recovered billions of dollars in past settlements.

Alphabet Inc. (NASDAQ: GOOGL) faced investor scrutiny following reports of significant delays in its flagship AI model and a substantial increase in projected capital expenditures for the fiscal year.

The company’s stock price declined sharply in mid-July 2026, reflecting market concerns over execution risks in its artificial intelligence initiatives and heavy spending commitments.

AI Development Delays

On July 16, 2026, Bloomberg reported that Alphabet’s Google is months behind schedule on delivering Gemini 3.5 Pro, its most powerful flagship AI model. The report attributed the delay to ongoing coding efforts.

Google updated the data used to train Gemini late last month in an attempt to improve its skills, but the results were disappointing. Following this news, Alphabet’s stock price fell $16.46, or 4.4%, to close at $354.46 per share on July 16, 2026.

Capital Expenditure Surge

On July 22, 2026, Alphabet released its second quarter 2026 financial results. The company announced a significant expansion of expected full year 2026 capital expenditures to $195 billion to $205 billion.

For the quarter, Alphabet disclosed a negative free cash flow of $5.9 billion. During the accompanying earnings call, Chief Financial Officer Anat Ashkenazi reiterated the expanded capital expenditure guidance.

Chief Executive Officer Sundar Pichai stated merely that Gemini 3.5 Pro is currently in testing. No additional details on the expected commercial launch, customer adoption, or financial impact of the model were provided.

Following the earnings release, Alphabet’s stock price fell $24.40, or 7.13%, to close at $317.69 per share on July 23, 2026.

What the Numbers Show

The combination of negative free cash flow of $5.9 billion in Q2 2026 and the raised full-year capital expenditure guidance of $195 billion to $205 billion highlights a period of intense investment intensity. This spending surge coincides with reported setbacks in the development of Gemini 3.5 Pro, suggesting that high capital outlays are not yet translating into immediate product milestones or revenue visibility from the new AI model.