Google limited Meta’s access to its Gemini AI models after Meta sought more computing capacity than Google could provide, delaying some of Meta’s internal AI projects and prompting staff to optimize AI token usage. Google Cloud generated $20 billion in Q1 revenue, but CEO Sundar Pichai said capacity constraints doubled the unit’s backlog and hindered higher growth.
Google notified Meta in March that it could not fulfill the full computing capacity Meta sought for its Gemini AI models, leading to formal limits on usage. This capacity shortfall prevented Meta from deploying the models at the scale it required.
The restriction disrupted and delayed several of Meta’s internal AI initiatives, prompting the company to instruct staff to use AI tokens more efficiently. Other Google clients experienced similar, though less severe, constraints.
Google Cloud posted $20 billion in revenue for the quarter ended March, but Sundar Pichai reported that computing power shortages caused the unit’s backlog to nearly double quarter-on-quarter. These constraints have dampened potential growth despite robust demand for AI services.
