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Google unveils Gemini 3.5 and agentic tools to challenge OpenAI and Anthropic

At Google I/O 2026, the company announced the global launch of Gemini 3.5 Flash, the rollout of personal AI agent Gemini Spark, and a reduction in its AI Ultra subscription tier as it intensifies competition in the artificial intelligence sector.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: CNBC · original
Google debuts new AI models, personal AI agents in effort to keep pace with OpenAI and Anthropic
Tech giant pivots to autonomous agents with new model releases and subscription price cuts

Google has announced a suite of new artificial intelligence models and agentic tools at its annual developer conference, Google I/O 2026. The announcements mark a strategic pivot towards autonomous agents capable of planning and executing multi-step work with minimal human intervention, as the company seeks to keep pace with rivals OpenAI and Anthropic in the rapidly evolving AI market.

Central to the unveiling is the general availability of Gemini 3.5 Flash, which is now accessible globally via the Gemini app and AI Mode in Search. The model is designed to handle complex agentic workflows and coding tasks, reflecting a shift in capability towards more sophisticated automation. Additionally, Google confirmed that Gemini 3.5 Pro is currently in internal use and is scheduled for public release next month.

In a move to expand its user base, Google began rolling out Gemini Spark, a personal AI agent powered by the 3.5 Flash model, to trusted testers. A beta version of the agent is planned for Google AI Ultra subscribers in the United States next week. This release of personal AI agents underscores the company’s focus on integrating autonomous capabilities directly into consumer-facing products.

Commercially, Google adjusted its pricing structure to support these advancements. The company reduced the price of its AI Ultra subscription tier from $250 to $200 per month and introduced a new $100 monthly plan for power users. These changes accompany new features such as OmniFlash, a universal shopping cart with agentic purchasing capabilities for subscribers, and enhancements to the Flow creative toolset for generating video and music.

The announcements come against a backdrop of broader market activity in the technology sector. US stock markets rose at the start of the summit between US President Donald Trump and Chinese President Xi Jinping, with the Nasdaq Composite climbing 0.2% and Nvidia shares surging more than 2%. The market movements reflect continued investor interest in AI and technology stocks, coinciding with high-level geopolitical discussions regarding trade and AI development.

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