Google Gemini 3.5 leaks put GOOGL’s AI agent strategy in focus

Alphabet’s Google (GOOGL) drew market attention after leaked developer materials suggested its unreleased Gemini 3.5 model and a new AI agent, Gemini Spark, are moving toward broader deployment as competition intensifies with OpenAI and Anthropic. The leaks, reported before any formal launch as of May 15, 2026, indicate Gemini 3.5 Pro, code-named “Cappuccino,” may replace an expected Gemini 3.2 release. Developers cited tests showing stronger multimodal generation, interactive web app creation and coding performance. Abacus.AI CEO Bindu Reddy said Gemini 3.2 Flash reached about 92% of OpenAI GPT-5.5’s coding and reasoning performance at 15 to 20 times lower operating cost. Spark is described in leaked materials as a 24-hour personal AI agent able to manage email, online tasks and multi-step workflows. The disclosures also raised privacy concerns, including potential access to Google apps, chats, location data and third-party services. Analysts said Google’s distribution through Android, Gmail, Search and Chrome could give it an advantage in AI agents, though some industry sources said the new Gemini may still trail Anthropic’s latest models.