- Gemini 3.6 Flash is now rolling out in GitHub Copilot, designed for web and app development, coding, and longer-horizon agentic tasks.
- The model features configurable reasoning effort and support for parallel tool use across complex workflows.
- In early testing, Gemini 3.6 Flash showed higher task-completion rates and better token efficiency than Gemini 3.5 Flash across coding and agentic workflows.
- Alphabet is facing heightened scrutiny from investors due to a delay in the launch of its flagship model, Gemini 3.5 Pro, which is crucial for its AI ambitions.
- The delay has raised concerns as Chinese open-source models increasingly challenge top U.S. labs for customers amid worries about steep AI bills.
- Alphabet has increased its 2026 capital expenditure guidance to between $180 billion and $190 billion, raising concerns about its massive AI spending.
- Since late April, Alphabet shares have dropped about 9%, lagging behind other 'Magnificent Seven' stocks despite a 63% jump in cloud sales.
- Analysts expect Alphabet's second-quarter revenue growth to ease slightly, with a forecasted 21.3% rise in revenue for the April-June period to $116.93 billion.
Google's Gemini 3.6 Flash, now available in GitHub Copilot, aims to enhance web and app development with improved task-completion rates and token efficiency compared to its predecessor. The rollout is gradual, targeting Copilot Pro, Pro+, Max, Business, and Enterprise users.12
However, Alphabet is grappling with investor concerns following a delay in launching the Gemini 3.5 Pro, a model crucial for competing in the AI coding market. This setback comes as Chinese open-source models increasingly challenge U.S. tech giants, raising fears of overcapacity in AI infrastructure.6
Alphabet's capital expenditure guidance for 2026 has surged to between $180 billion and $190 billion, with plans for equity offerings, including investments from Berkshire Hathaway. Despite a 9% drop in shares since April, the company remains nearly 13% higher for the year, bolstered by a 63% jump in cloud sales.
Analysts predict a 21.3% rise in revenue for the April-June period, driven by cloud business growth, while ad revenue is expected to grow at a slower 13.7%. The cloud sector has benefited from significant deals, including multi-billion-dollar agreements with Meta Platforms and Anthropic. "While Google is missing the boat on AI coding and that's a very real growing concern ... Google's strategy is all about the ecosystem," said Dave Wagner, portfolio manager at Aptus Capital Advisors.
“Gemini 3.6 Flash offers configurable reasoning effort and parallel tool use, billed at provider list pricing. Alphabet raised its 2026 capital expenditure guidance to $180B-$190B in April, and its shares have fallen about 9% since late April despite a 63% jump in cloud sales.”
