Google CEO Sundar Pichai has dismissed suggestions that the company is falling behind in the artificial intelligence race, saying Google’s next-generation Gemini 4 model will significantly strengthen its position against competitors.

Speaking during Alphabet’s latest earnings call, Pichai told investors that Google remains committed to leading AI innovation despite increasing competition from companies such as OpenAI and Anthropic.

Gemini 4 Expected to Be Google’s Biggest AI Leap

Pichai described Gemini 4 as a highly ambitious project, saying the model has been designed to deliver substantial improvements over previous Gemini releases.

According to him, the upcoming model is considerably larger than earlier versions, enabling it to compete more effectively with leading frontier AI systems.

He said users would be pleased with the progress once Gemini 4 becomes available.

Google Admits It Must Improve in AI Coding

While defending Google’s broader AI strategy, Pichai acknowledged that the company still has work to do in coding and agentic AI—areas where rivals have recently gained momentum.

He noted that Google continues to lead in several AI capabilities but admitted improvements are needed to match competitors in software development and autonomous AI tasks.

The remarks come after reports suggested that Gemini 3.5 Pro was delayed because it failed to meet Google’s internal performance targets in coding-related benchmarks.

Gemini Flash Becomes a Key Focus

Rather than concentrating solely on its flagship model, Google highlighted the rapid progress of its Gemini Flash family during the earnings announcement.

The company said Gemini 3.6 Flash delivers notable gains in coding performance while using fewer computing resources than its predecessor.

Google also introduced:

• Gemini 3.5 Flash-Lite
• Flash Cyber, a cybersecurity-focused AI model

These products are designed for enterprise applications including customer support, cybersecurity, analytics, and cloud services.

Gemini User Base Continues to Grow

Despite questions over its competitive position, Google reported strong adoption across its AI ecosystem.

The company said Gemini now has 950 million monthly active users, up from 750 million at the end of 2025, reflecting growing consumer and enterprise usage.

Google also reported strong cloud growth, attributing the performance to increasing demand for AI infrastructure and enterprise AI services.

Investors Remain Focused on AI Leadership

Although Alphabet reported robust financial results, investors remain closely focused on whether Google can reclaim leadership in advanced AI reasoning and coding.

Concerns over rising investment costs and delays to flagship AI models weighed on investor sentiment, with Alphabet shares slipping in after-hours trading despite stronger-than-expected revenue growth.

Pichai, however, maintained that Google’s long-term investments across AI models, cloud computing, custom chips, and integrated Gemini services position the company well for the next phase of AI development.

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FAQs

What did Sundar Pichai say about Google’s AI position?
Pichai rejected claims that Google is falling behind in AI and said Gemini 4 will significantly improve the company’s competitiveness.

Why is Gemini 4 important?
Google describes Gemini 4 as a major upgrade that is expected to deliver stronger performance and compete with leading AI models in advanced reasoning and coding.

Did Google admit it is behind in AI coding?
Yes. Sundar Pichai acknowledged that coding and agentic AI are areas where Google needs to improve, while saying the company continues to lead in other AI capabilities.

How many users does Gemini have?
Google said Gemini has reached 950 million monthly active users, up from 750 million in late 2025.

Why are investors still concerned about Google?
Investors remain focused on delays to flagship AI models, increasing AI investment costs, and whether Google can regain leadership in advanced AI coding and reasoning.