Google's Gemini delay exposes a deeper problem: employee frustration

Poor morale at Google DeepMind is reportedly delaying AI model releases, with the flagship Gemini 3.5 Pro model months behind schedule. This situation is exacerbated by employee departures, some linked to a controversial Pentagon deal, and financial concerns for Google, which has seen its free cash flow turn negative due to AI investments. Competitors are also questioning Google’s progress in the AI race.

• Employee morale issues at Google DeepMind are contributing to delays in AI model releases.
• The company’s most powerful model, Gemini 3.5 Pro, is months behind its expected release date.
• Google’s free cash flow has turned negative, partly due to significant AI investments.
• Several key researchers have left Google DeepMind for competing AI labs like OpenAI and Anthropic.
• Some employees have resigned due to Google’s April deal with the Pentagon, citing moral objections.
• Competitors like Meta are publicly questioning Google’s AI capabilities.
• Google disputes claims of widespread morale problems and significant departures due to the Pentagon contract, citing lower attrition rates for AI talent.
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