Google Limits Meta’s Gemini AI Capacity as Shares Drop 15% Since May Peak
GOOG•Google capped Meta’s use of Gemini AI models after refusing to meet full capacity requests in March, potentially preserving supply for existing customers. Shares have fallen about 15% from their mid-May peak, prompting some analysts to list Alphabet among three megacaps seen as attractive purchases at current valuations.
1. Google Limits Meta’s Gemini AI Capacity
In March, Google informed Meta it could not fulfill the full Gemini AI processing capacity Meta sought, capping access to the advanced models. The move is seen as a way to balance infrastructure demand and preserve model capacity for existing enterprise clients.
2. Shares Down 15% Prompt Analyst Buys
Since mid-May, Alphabet shares have declined roughly 15%, leading some analysts to recommend the stock alongside Broadcom Inc. and Meta Platforms. These analysts cite resilient fundamentals and long-term AI growth prospects as justification for purchasing at current depressed valuations.
