It has been revealed that Google has restricted Meta’s usage of its artificial intelligence (AI) model, Gemini.
This is seen as a clear example of how even the world’s largest AI companies are struggling to secure enough computing infrastructure to handle surging demand.
Reuters Yonhap News
On June 28 (local time), the Financial Times (FT) reported that Google had informed Meta in March that it could not provide the full Gemini capacity Meta had sought to purchase. As a result, some of Meta’s internal AI projects have reportedly experienced setbacks and delays.
This restriction remains in effect as of the date of publication. In addition, with a general push for greater cost efficiency, Meta is encouraging its employees to use AI tokens more efficiently, according to sources. Other Google clients have also been affected by usage restrictions to varying degrees.
Reuters Yonhap News
Despite investing tens of billions of dollars in chips, data centers, and power infrastructure, even the world’s leading tech companies are facing difficulties in securing enough computing resources to keep up with the explosive demand for advanced AI models and services. The FT pointed out that Google’s recent decision is a prime example of the mounting infrastructure bottlenecks and pressure accumulating throughout the AI industry.
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With demand from major corporate clients like Meta soaring, Google is scrambling to secure additional capacity. Earlier this month, Google signed a contract worth $920 million per month to lease computing infrastructure from SpaceX. In its first-quarter earnings report, Google announced that its cloud revenue surpassed $20 billion for the first time ever. The company also stated that its remaining cloud contract backlog—services yet to be provided—more than doubled from the previous quarter to over $460 billion.
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