Alphabet's stock declined over 6% in two days, driven by market concerns over the delayed launch of its flagship AI model, Gemini 3.5 Pro. This comes as Chinese startup Moonshot AI released its Kimi K3 model, which independent institutions report as leading in evaluations.
Google's model delays and competitive pressure from Moonshot AI's Kimi K3 signal a tightening race for AI model leadership, directly impacting market perception and valuation.