Demis Hassabis, the CEO of Google DeepMind, speaks at the 2026 Google I/O technology developer conference on May 19, 2026 (Karl Mondon/Getty Images)

Google announces new models, glasses, agents, but investors are not impressed

At Google’s I/O developer conference, the company announced a bevy of new products, but none of it helped the stock one bit.

Jon Keegan

5/19/26 4:03PM

Each year at Google’s I/O conference, developers get a look at the new products and features that will define the company for the next year. This year’s three-hour-long keynote featured a dizzying array of new products and features, but investors were not feeling it. The stock started the day down, and stayed down, dropping over 2% during Tuesday’s session.

Probably the most significant new thing Google announced was Gemini Spark, Google’s answer to the persistent AI agent OpenClaw. Spark can run long-running tasks for you even when you turn off your phone or shut your laptop.

The next version of Google’s Gemini AI model was announced — Gemini 3.5. But only the smaller, faster version of the model, Gemini Flash 3.5, was ready for release. Gemini 3.5 Pro won’t be available until next month, according to the company. Google showed benchmark scores putting Gemini Flash 3.5 slightly ahead of Anthropic’s Claude Opus 4.7 and OpenAI’s GPT-5.5 in agentic tests, as well as multimodal tests (processing prompts that use both images and text).

Google also previewed a brand-new multimodal model called Google Omni and released the first version, Gemini Omni Flash:

“Omni is our new model that can create anything from any input — starting with video. With Omni, you can combine images, audio, video, and text as input and generate high-quality videos grounded in Gemini’s real-world knowledge. You can also easily edit your videos through conversation.”

An update to Google’s AI-powered coding tool was released — Antigravity 2.0 — which competes against Anthropic’s Claude Code and OpenAI’s Codex.

And what tech keynote would be complete without some kind of AI face computer. Google announced a pair of chunky “audio glasses” in a partnership with Gentle Monster and Warby Parker that lets you ask Gemini what you are looking at.

Google glasses — Google’s new “audio glasses” by Gentle Monster and Warby Parker (Benjamin Fanjoy/Getty Images)

Investors may have been looking at this list of announcements — as well as other new abilities, like conversation AI features across many products and creative tools like Google Flow — and wondering if this justifies the $180 billion to $190 billion in capex that the company says it will spend this year.

In reality, most of that capex money is being spent on its increasingly important TPU 8 AI chips, which are seeing some real traction in the market.

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Major platforms like Kalshi and Polymarket have seen huge upticks in users of late, thanks in no small part to what’s felt like a recent sporting smorgasbord, with major competitions across hockey, basketball, and soccer soaking up fans’ time (and spending, clearly) at the outset of summer.

While gaming industry groups may not like it, there’s been a huge change in the methods people are using to put money on the big games, with everyone from fortunate NYC bar owners, to a far less fortunate Spanish supporter, turning to prediction markets to try and turn their sports know-how into cold, hard cash.

According to a new report from Adam Blacker for apptopia, that shift might have been even more seismic than imagined in the wake of the NBA and NHL finals and around the 2026 World Cup kicking off.

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Anthropic pulls Fable and Mythos access worldwide after Trump administration bars their use by foreign nationals

Only days after releasing two versions of its next-gen AI model, Anthropic has disabled them for users worldwide.

Anthropic says it received a Friday night order from the Trump administration to suspend access to the models for any foreign national (anywhere in the world) — a group that included some Anthropic employees. In response, the company turned off access to everyone.

Last week, the company released to the public its much-anticipated Claude Fable 5 model (and its restricted version Claude Mythos 5, which is still being tested with trusted partners). Anthropic said in a blog post announcing the action that officials cited national security concerns with the new models, while offering few specific details.

The post said that the government gave the company “verbal evidence of a potential narrow, non-universal jailbreak” of the public Fable 5 model. A jailbreak is a means by which users can evade restrictions built into the code to unlock prohibited functionality. Anthropic downplayed the significance of the attack, and said other major models, such as OpenAI’s GPT-5.5, could also be affected by the technique described.

Fears of these first Mythos-class models being misused are running high, after Anthropic warned the cybersecurity world in May that the advanced cyber capabilities of Mythos have rapidly discovered thousands of vulnerabilities in ubiquitous software, leading to the decision to restrict the full version of the model to a close group of trusted partners for testing.

This morning, Axios reported that Anthropic technical staff have flown to Washington to meet with White House officials to resolve the issue.

The Wall Street Journal is reporting that the Trump administration’s decision to take action against Anthropic was prompted by discussions that Amazon CEO Andy Jassy had with officials, including Treasury Secretary Scott Bessent. According to the report, Amazon researchers said they had been able to evade some of Fable 5’s security restrictions using specific prompts. Amazon is a major investor in Anthropic.

Anthropic is currently suing the US government to fight the Pentagon’s blacklisting of the company on national security grounds.

Statement on the US government directive to suspend access to Fable 5 and Mythos 5