Google Launches Gemini 3 AI, Sets New Standard in OpenAI Rivalry With $66.9B CAPEX Surge

Gemini 3 is positioned as Google's most sophisticated AI model, offering improved reasoning and task execution. highlighted its ability to "grasp depth and nuance" and deliver "genuine insight" over generic responses according to reports. . The model supports generative interfaces, such as creating magazine-style explanations or interactive tools like loan calculators and physics simulations according to the announcement. For corporate users, it enables employee onboarding, video analysis, and procurement optimization as research shows.

Antigravity Platform for Developers Google introduced "Google Antigravity," a platform allowing developers to code at a task-oriented level. The platform aligns with the rise of "vibe coding," where AI tools generate code via prompts. Pichai described Gemini 3 as the "best model ever," enabling developers to build applications with minimal manual coding according to Pichai. The model is accessible via the Gemini API and Vertex AI for enterprise integration as stated in the announcement.

Travel Planning Enhancements Google updated its AI Mode to streamline travel planning, including direct flight and hotel bookings. The feature, available in over 200 countries, allows users to describe trips in natural language, compare options, and refine itineraries using real-time data as reported. Partnerships with Marriott, Wyndham, IHG, and Choice Hotels aim to expand booking capabilities. The update includes Canvas, a workspace for organizing trip details, and agentic booking features powered by Project Mariner according to the update.

Singapore AI Research Lab Expansion Google DeepMind opened a new AI research lab in Singapore, focusing on linguistic and cultural inclusivity in AI. The lab aligns with Singapore's National AI Strategy 2.0 and supports frontier research on Google's Gemini system. The initiative builds on a regional workforce expansion and collaborations with public agencies to enhance digital services and cybersecurity as detailed in the announcement.

Strategic Financial Commitments Google's AI capital expenditures (CAPEX) have surged, . The investment underscores Alphabet's commitment to AI infrastructure, including data centers and custom tensor processing units (TPUs). While free cash flow has declined due to CAPEX, the company anticipates long-term benefits from cloud and search growth. Analysts predict CAPEX efficiency improvements as AI hardware costs stabilize.

Competitive Landscape and Market Position Google's Gemini 3 challenges OpenAI's GPT-5, with both firms racing to refine their models. Pichai cautioned against overhyping AI, drawing parallels to the early internet era. Despite competition, Google's search business remains resilient, according to market analysis. The company's "full-stack" approach—spanning research, hardware, cloud, and consumer apps—positions it to scale AI integration faster than rivals as experts note.