Part 1 is companies realizing they're spending too much on AI
Part 2 is companies switching to cheaper AI because there are "good enough" models to do the job.
That may not bode well for OpenAI and Anthropic valuations that assume they can hold pricing power
Google says its new Gemini 3.5 Flash model could save large cloud customers more than $1 billion a year versus rival frontier AI models.
Full story: https://t.co/0F1ymm23cI
Gemini 3.5 Flash is out, and it's a major jump over Gemini 3 Flash in model capability for knowledge work. We've been evaluating it on our Box AI Complex Work Eval in early release, and the model delivers a 12 percentage point jump on complex document tasks.
For testing this model, we give the Box AI Agent (using Gemini 3.5) complex problems to solve that represent common but difficult knowledge worker tasks in banking, consulting, public sector, healthcare, and other industries. These tasks can be things like drafting reports, doing due diligence, and more, given a set of relevant documents.
In our tests, Gemini 3.5 Flash delivered jumps across every industry, including:
* Financial services: 81% vs 73% (+8pp)
* Public sector: 76% vs 59%, (+17pp)
* Healthcare: 73% vs 51%, (+22pp)
* Life Sciences: 67% vs 47%, (+20pp)
Incredible to see the continued performance gains.
Gemini 3.5 Flash will be available soon in Box AI Studio and through the Box API. The Box MCP Server will soon be available in the Gemini app with more details to come.
Google Cloud has incredible momentum: our models now process 16B+ tokens /min via direct API use by our customers (up from 10B last quarter).
This week at Cloud Next we’re sharing an extraordinary range of new partnerships and innovations, including our new Gemini Enterprise Agent Platform, the new mission control to build, scale, govern, and optimize agents. We’re also launching our 8th-gen TPUs to take on the most demanding agentic workloads.
Congratulations to our @GoogleCloud team, and a huge thanks to our partners who are building the future with us.
Ten years ago, AlphaGo’s legendary match in Seoul heralded the start of the modern era in AI. Its famous ‘Move 37’ signaled to us that AI techniques were ready to tackle real-world problems in areas like science - and ideas inspired by these methods are critical to building AGI
To the Scientist, the Engineer, and the Developer: Gemini 3.1 Pro has arrived in @GeminiApp
It's a significant leap in complex reasoning (77.1% on ARC-AGI-2) so it's great at agentic tasks, intricate coding, and data synthesis projects.
You should see fewer errors, better logic, and surprisingly good SVGs. :)
Helpful update for students, you can now take full practice SATs for free in the @GeminiApp.
It uses vetted content from @ThePrincetonRev and gives you feedback straight away. Starting with the SAT today, but more tests are on the way!
New year, same pace 💨 Here’s what we’ve launched recently:
— A beta version of Personal Intelligence in @GeminiApp. With Personal Intelligence, you can choose to connect certain Google apps like Gmail and Photos to get more tailored responses that are uniquely helpful to you. Rolling out to U.S. Google AI Pro and Ultra subscribers now, with expansions to come
— @Gmail in the Gemini era, transforming your inbox into a personal, proactive assistant that helps you get more done with features like AI Overviews, Help Me Write, Suggested Replies, and AI Inbox
— LLM flexibility, Agent Mode improvements, new agentic experiences, and more in the @AndroidStudio Otter 3 Feature Drop
— Support for Agent Skills in @antigravity. Agent Skills are reusable packages of knowledge (instructions, best practices, and optional scripts and resources) that extend what an agent can do
— Native vertical formats (9:16) in Veo 3.1 Ingredients to Video and state-of-the-art upscaling to 1080p and 4k in Veo
— Verification of Google-AI generated videos directly in the Gemini app
— MedGemma 1.5, an updated open medical AI model that improves 3D imaging and medical record reasoning performance
— TranslateGemma, a new family of open translation models with support for 55 language pairs
This update is huge! 🤯
As a parent I'm constantly juggling multiple balls (and apps). I asked @GeminiApp when my twins' next gymnastics class was (Calendar), then immediately asked for the latest guidance on moving them up a level. It checked (Gmail), found the info on moving up from "Rug Bug," and linked me directly to the email so I could open it and respond.
Cleared a nagging back-of-mind to-do instantly. Congrats to the Gemini team on this amazing launch! 👏
These claims around pricing are inaccurate. We strictly prohibit merchants from showing prices on Google that are higher than what is reflected on their site, period.
1/ The term “upselling” is not about overcharging. It’s a standard way for retailers to show additional premium product options that people might be interested in. The choice is always with the user on what to buy.
2/ “Direct Offers” is a pilot that enables merchants to offer a *lower* priced deal or add extra services like free shipping — it cannot be used to raise prices.
🚨BREAKING: @GoogleDeepMind’s Gemini-3-Pro is now #1 across all major Arena leaderboards
🥇#1 in Text, Vision, and WebDev - surpassing Grok-4.1, Claude-4.5, and GPT-5
🥇#1 in Coding, Math, Creative Writing, Long Queries, and nearly all occupational leaderboards.
Massive gains over Gemini-2.5:
🔸WebDev in Code Arena: 1487 (+280 pts vs 2.5)
🔸Text: 1501 (+50 pts)
🔸Vision: 1328 (+70 pts)
🔸Arena Expert: Top-3 (just 3 pts behind #1)
Huge congrats to the @GoogleDeepMind team on this breakthrough! 👏
Today we introduced Gemini Enterprise, built with our most advanced Gemini models. It allows you to chat with your company’s documents, data and apps as well as build and deploy AI agents, all grounded in your information and context.
Have a look at how it helps you build an agent for almost anything:
Today, we announced Gemini Enterprise - the new front door for AI in the workplace.
Gemini Enterprise brings the best of Google AI to every employee through an intuitive chat interface that unifies six core components -
Congrats to Michel Devoret, John Martinis, and John Clarke on the Nobel Prize in Physics. 🔬🥼 Michel is chief scientist of hardware at our Quantum AI lab and John Martinis led the hardware team for many years.
Their pioneering work in quantum mechanics in the 1980s made recent breakthroughs possible, and paved the way for error-corrected quantum computers to come.
I was just at our quantum lab in Santa Barbara yesterday seeing the incredible progress, hope they are celebrating today. Feeling lucky this morning to work at a company that has had 5 Nobel Laureates among our ranks - 3 prizes in 2 years!
1/ Q2 was a standout quarter with robust growth across the company. As we showed at I/O, we’re leading at the frontier of AI and shipping at an incredible pace.
Search and YouTube saw strong revenue growth.
And Cloud had another quarter of strong growth in revenues + profitability, with its annual revenue run rate now $50B+